@Wayne Brooks Yes, a survey would disclose this as well... although I wouldn't call that a title defect per se unless the buildings already encroached on the easement.  

Problem with this is you don't have any money so this isn't a deal per se, for you, but once you get some money you should try to put together deals like this.Now, back to your problem; If the house sells at $125K, after he pays off the 1st, pays back the parents, and pays closing costs and commissions (8%?)

Palm Springs is known for being a luxury travel destination, but not every home is a “luxury home” per se.

BP is a great forum--some local Meetups are Brew City REI (which we help run), Milwaukee REIA, Apartment Association of SE WI.

If this was in NYC, I would have done a pro se case in court myself.

@Jack Gibson  not really calling you out per se..

To me this example demonstrates some silliness of mortgage rules that won't count SE income but will allow any employer paid income.

I can't come close to building a house for $80/sqft (in 2015 maybe), and that's in a country bedroom town in SE Texas, with no garages, no carport and minimal porches.

For more reading and sources:https://www.redfin.com/city/49...https://www.realtor.com/reales...https://worldpopulationreview....https://www.census.gov/quickfa...https://censusreporter.org/pro...https://datausa.io/profile/geo...https://datausa.io/profile/uni...https://www.durhamnc.gov/719/C...https://www.durhamnc.gov/Archi...https://www.neighborhoodscout....https://livingcost.org/cost/un...https://www.bizjournals.com/tr...https://www.durhamnc.gov/3748/...https://fred.stlouisfed.org/se...

You can deduct all ordinary and necessary expenses, such as taxes, interest, repairs, insurance, management fees, agents' commissions, and depreciation.Do not deduct the value of your own labor or amounts paid for capital investments or capital improvements.The good news of passive investing is no SE tax.