Again, I primarily work in Portland proper (which, it seems like most of these folks responding aren't aware, is a whole different ballgame than the rest of Oregon). 

@Nathan Harden- agree about OH ....I went to school at Miami U and lived in columbus area for a few yrs  ...many friends that still live there ......I live in Seattle proper ( near  Magnusson Park ...also  own  2  properties in Mason County ......father in law lives on  close to 10 acres close to downtwon Medina so we will be dealing with  figuring out the  best thing to do with this  as he gets  older ( he is  83 now) ...stay in touch

Just need to stat under the occupancy limit.Also keep in mind basement needs to be livable square footage, ie have egress and proper ceiling height. 

@Anthony Sigala that "Rule" was created for mostly Class B properties BEFORE the Great RE Crash of 2008-2010.Values after the Crash dropped so much, that it could also be used for Class A rentals.Values are now more than their pre-crash highs, so the rule now only applies to Class B & C rentals.How are you identifying Class B & C submarkets in your area, so you can properly apply the rule to the right rentals?

Sometimes, you need to be very specific and provide all the details to help them properly investigate.

If the Warranty Deed has been properly recorded, the court deems that, as "constructive notice".

The property was my primary residence for a decade and now functions as rental unit so I am happy with the purchase overall and it has worked out well.

Like I mentioned in my previous post getting a PM who will actually manage your property properly will be very hard.

Using the search function gave me this, hope it helps https://www.biggerpockets.com/forums/62/topics/1211224-nyc-c...

so he has an initial negative equity in excess of $100k.so -$100k / (a very small cash flow when properly allocating for expenses and vacancy) equals years before there is any cash flow.