Fixed rent is a great way to get the property demonstrating you have guaranteed income then you can switch to commission down the road to get more upside on your investment. 

I told him that I could buy an income producing property for that price tag and that he hadn't demonstrated what I would receive for the money.  

How you approach the mentor demonstrates how you will approach real estate investing.

I'm happy to extend you two free months access to proof of funds to demonstrate our sincere desire to be a funding partner in the future.

I'd call it Demonstration supplies in quickbooks and I would deduct it like any other business expense. 

This story demonstrates in many ways how the business can get tough, and I'm reading into a lot of "classic" tenant tricks being played by the friend in this situation.BTW: Amy's answer should have been..."

@Brent Langlois at this point, for 2016 taxes, the value of hiring a CPA is demonstrated with accurate tax returns that are compliant with federal, state, and local governments.

To qualify as an RE pro, one needs to demonstrate 750 hours and greater than half of their professional working time being spent in real estate.However, that's only step one.Step two is demonstrating material participation.To materially participate, one generally must demonstrate that they participated in the rental activity for 500 hours.Here's the problem - each one of your rentals is considered a separate activity for the material participation rules.

I never sign anything without putting the , President behind it which demonstrates that I'm action on behalf of my corporation in my capacity as President. 

If your attitude is to provide safe and affordable housing and your reputation reflects that you should be fine, if it's all about money (well, it is but...talking reputation here) you may not be able to really compete with others having that mind set or demonstrating that mind set.Search here about non-profits and low-mod housing.