Well, the guy had a dog, so for ease of cleaning he tiled the ENTIRE house, front porch, and back patio with Mexican Pavers!!!

If that is the case you may be subject to a penalty and interest for underestimating your quarterlies (like to zero).That would would one reason among others to consult with a CPA.Wholesaling, flipping rehabbing etc are are short term activities subject to ordinary income tax rates up to 43%+ Federal.

That's good information, and I think you are right that they would get tired of seeing me monthly and as long as nothing is out of the ordinary I don't really want to be there monthly either. thanks

There is a door out to back patio that you can't see in the picture so I'll just need to make sure the door can still open and there's sufficient clearance to add another cabinet there.

Traveling with a spouse or a partner in regards to meals get a little gray, it's one of those vague rules "is the expense reasonable and ordinary" It's a good idea to get them involved so there is no question, for example my wife does the books and picks colors and finishes.Hope this helps, travel safe!

Examples - he built an unpermitted outdoor canopy for his tools that's connected to the main structure, reversed the laundry hookups to run outside rather than inside, converted an interior patio into a closet, and even worse put together a 'shanty' on the side of the house for someone who sleeps in the backyard (this was hidden under tarps and I discovered this - not my inspector).I contend that I have plenty of support for an eviction, but I discussed this with someone from a local apartment owners association, and she said that I wouldn't have a right to evict.

Hey Tom,Just wanted to chime in about IRAs.You had mentioned funding your Roth IRA from your Traditional IRA, this is called a Roth conversion and doesn't have limitations as to the amount you do, but as you mentioned will be taxable as ordinary income.  

He had suggested that I just keep it and use it as a rental and I would receive as much income as I had received from a note, yet with this one I would have tax benefits and appreciation benefits rather than just ordinary income.

The improvements themselves, anything you spend getting it ready to rent, and big capital items have to be depreciated over multiple years.If net rental income is positive, you pay tax on it at your ordinary rate.

Rental income is ordinary income which is taxed at the taxpayer's marginal tax bracket rate whether the rental property is held in his own name or in a passthrough entity.As a general rule, the passthrough entity is tax neutral, so there is no tax advantage to be gained by holding rental property in a passthrough business entity.