You want the lease to be the same as for an ordinary rental.

I quote:PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING Seller shall maintain the property until the earlier of closing or occupancy of buyer in materially the same condition as of the date of acceptance of this offer, except for ordinary wear and tear.

Anyway, they were very critical of my bank statments and wanting justifications for all the "out of the ordinary" deposits we had.

Flipping is treated as ordinary income by the IRS.

It would be out of the ordinary for it be attached If the son hasn't yet taken title.Child support liens and other judgments often become an issue when heirs inherit property and take title.

Short term capital gains are at the same rate as ordinary income.

Just to be clear I will add my 2cents, when it comes time to retire the loan on the 401k will need to be paid in full or the remaining balance will be considered a distribution and taxed at ordinary income tax rates.

Steven Hamilton II are you saying that driving to and from your rental property is not a ordinary and necessary expense?

Then the interest received from the buyer is ordinary income.

You don't want to refi and cash out, because then you could get into it being reclassified as a sale by the IRS and then §707(b)(2) will be triggered and the gains will be treated as ordinary instead of capital and that will cost you 15-20% in taxes.Originally posted by "REI":You are still legally liable for the loan.