Hi guys,Hope everyone is well.Lockdown is being lifted and looks like the B and C areas took a ~8% haircut in asking prices.I am looking at the center of Portugal, in the interior and RE is local...

Your gross profit % will be calculated in the year of sale and applied to the payments as they are received.Principal payments to you are not reportable as income and principal payments against your original loan are not deductible.As for the interest, you will report the interest income on Schedule B and report the interest expense on your existing loan on Schedule A as investment interest.

1) We make sure backside funds are confirmed at title before we initiate frontside wire.2) Our agreement that we get the wholesaler to sign essentially would allow us to secure a loan against the property if for whatever reason there was an issue (as never happened).3) We generally insist that both the A-B and the B-C contract are at the same title company.

I now live in Las Vegas but still have a B&B and real estate company down there and go back 5x per year.

We follow a similar model as @Bill B. and with similar results, except our properties are from the 60s, so we gut them and rehab from the studs up, basically resetting the clock. 

See the chart from Fair Isaac Company (FICO) below: FICO Score Pct of Population Default Probability 800 or more 13.00% 1.00% 750-799 27.00% 1.00% 700-749 18.00% 4.40% 650-699 15.00% 8.90% 600-649 12.00% 15.80% 550-599 8.00% 22.50% 500-549 5.00% 28.40% Less than 499 2.00% 41.00% Source: Fair Isaac CompanyAccording to this chart, investors should use corresponding vacancy+tenant-nonperformance factors of approximately 5% for Class A rentals, 10% for Class B and 20% for Class C.To address Class C payment challenges, many industry "experts" are now selling programs to newbie investors about how Section 8 tenants are the cure.

Then put metal bands around. 

This is largely because I can typically get higher rents in B and A-class neighborhoods without relying on Section 8.I’d recommend focusing your search on C and C+ neighborhoods, for both multi-family and single-family homes with more than three bedrooms.

However, tenant's credit history will take a dive and be on record and since I'm the property manager (me / owner), I will not vouch for tenant when seeking for a place to rent in the future.If I go with option "b" and the tenant / tenant attorney agrees and signs an agreement to make it official , at least I can get back my money within 10-15 years.

I get tired of people saying, but you have A, B and C.