This will accomplish the following.Increase monthly cash flow by $1800After paying 10% penalty I will save $4400 over what I would pay in interest in 2 years / In other words, interest savings more than pay the penaltyIn my opinion the taxes are a wash as I would have to pay those now or when I retire.There you go,  please poke holes in this plan and tell me what I am not considering.

Literally, not kidding. 0_0  I asked what it was he is not supposed to be doing, and he informed me (in a conspiratorial manner) that he is trying to move mom out (and requiring the 60 day notice and 2 additional month's payment), and a new tenant in, WITHOUT TELLING THE PROPERTY OWNERS, in order to "keep your mother out of trouble". 

But if a lender saw that the property was indeed producing but not ready to count that as income would they potentially consider it a wash?

I've thought of finishing the hardwood and then putting a rug that can be washed over it for tenants but that would essentially double the cost. 

If tax brackets remain equal, its a wash.  

Highest water use is  the toilet , washing machines, and then showers in that order.

So, maybe the good and the bad are 'a wash'.Purchase the same property for a discounted price of only $20,000.

This coverage is very cheap and can keep you solvent if you were depending on your asset's revenue to pay the mortgage.  

This “managed earnings†process can be played for an extended period, but ultimately the earnings - or more importantly “hidden losses†- come out in the wash.

I don't see any tax advantages to an LLC right now, its almost a wash with the way things are and I never found someone with a decent and detailed enough explanation as to why an LLC was better but if someone else has info I'm open to hearing it.