You take on the role of digging deep into their pro forma and grading it like a teacher instead of writing the paper yourself. 

(you do not pay the taxes you lose the house, and you do not pay the insurance the lender will put insurance on the property for you)  Assuming the properties are showing up on your tax returns the income/loss will be calculated from the returns using this form:  https://content.enactmi.com/documents/calculators/Form1038.C...The form will allow you to add back your paper loss of deprecation on your returns as well as your property tax, insurance and mortgage interest deduction as those last three are already taking into account into your payment as mentioned in the first paragraph.

However, you could still have - cashflow on paper, but still break even or potentially have + cashflow on your taxes.

They don't tell you about all the out-of-pocket cost for mail outs and paper direct mail. 

Generally places with high cash flow on paper are cheap homes in not so great areas where you have higher turnover, damages and real cash flow is lower.

So the "high equity" thing may just be paper, go get it realized.

yes the cash flow looks amazing on paper!

Equity is great on paper, but it may not mean much when the first position balance has grown exponentially due to accrued late fees and penalties and the property is selling for maybe 70 cents on the dollar at auction. 

You can also tell her that you are going to start the paper trail so that you don't get stuck with unpaid rent, but that it will be rescinded once she gets up to date on payments. 

So there is a paper trail of me using it as my residence.