The state initiated an investigation (#4), but then essentially put it on hold pending the outcome of #2#2 dragged out for about a year because the tenants were pro se in the court and the judge gave them A LOT of latitude. 

Oregon and Oregonians per se are pretty laid back folks by and large ...

Otherwise, there isn't a proration per se, but a credit given to the new buyer for the full amount.The purchase price can be net, but a security deposit doesn't belong to the seller and rent is income produced by the property. 

You are going to be subject to SE tax on the flip if you do it yourself.

Hello, was wondering if anyone could refer a quality contractor for a quick rehab project on a rental unit.I am in the Canton, Plymouth, Westland, Livonia area.Thanks!

I am more on the metro-Detroit side of SE Michigan :)Brandon couldn't have put it any better.

@Brandon Hall From an accounting perspective yes that would be the "operations view," but from a lending and banking point of view the cash flow statement is the most important aside from the profit and loss statement since the earnings could be stored in current assets or accounts receivables and the turn time on converting that AR/asset into "cash," may be many days out.I guess if you're doing your P&L on a cash basis and this is only rental real estate then that could be used, however there are other deductions we add back that aren't typical that affect qualifying income such as .23 cents per business mileage (IRS rate for depreciation for bus. miles) claimed on line 44A of schedule C, home office use, we give the borrower back half of the SE tax since a normal wage earner would only have to pay half we try to put the SE borrower on the same playing field and more.

I have seen a court case where a taxpayer was denied the deduction because a bookcase filled with pleasure reading books was in the room.Another glitch with rental property is whether it qualifies as a "business" since it is per se passive.

I did however, want to see if investors had better luck using other marketing services (specifically, in the SE MI market).

I live in SE Portland and if you ever want to grab coffee I'm game.