The seller may anchor to that 5% interest rate because in theory they could put it in a savings account or CD and make 5% (ignoring taxes for now).

John Thedford Let's not be ignorant here.

@Jay HinrichsFirst, your comment that I thought it was cool is an ignorant statement.

Title companies ignoring this policy will eventually (after default, claim and investigation) get black-balled from closing federally insured loans… regardless of whether or not they are aware of it.

Oh, I've owned and sold a few rentals, so I'm not completely ignorant of the industry.

I have also always gotten an assist from market appreciation but let’s ignore this.  

You want an accountant who can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.Good luck.absolutely, yes. we feel confident about filing, but absolutely ignorant to long term tax strategy! 

Warren Buffet says "Diversification is protection against ignorance.

Some people miscalculate returns (cash flow, NOI, IRR, etc) when they ignore capex.

But at some point, there are too many stories to ignore and you are faced with a decision.