Trust Name: 11XX809 XXXXXXXXXXX Trust_________________________________________________________________5365 East 131 St $26750 - Cashor$30600 Owner Carry 4% Interest; 10 years, $5000 DownTrust Name: 53XX65 XXXXXX Trust________________________________________________________________5502 East 135th$26750 CashOr$30600 Owner Carry 4%, 10 years $5000 DownNOTE ON CONTRACT: (i forgot where on contract Dennis noted this) ----- Buyer not asking for repairs however is noting offer reflects need for new extreme concrete workTrust Name: 55XX02 XXXXXXXX Trust__________________________________________________________________123486 Darlington Ave$24635 CashNOTE ON CONTRACT: (i forgot where on contract Dennis noted this) ----- Buyer not asking for repairs however is noting offer reflects need for new extreme concrete work, as well as, garage floor replacement.Trust Name: 1234 XXXXXXXXX________________________________________________________________ All contracts.....for all offers now & later: All $100 EMD upon acceptance30 Day CloseNo survivorshipSigned by XXXXXXXXXXXXXXXX-XXX-XXXXAddress: XXXXXXXXXXXXXXXXXXXXXXXXXMUST HAVE Wording on all contracts: All proceeds in excess of buyers closing costs will be returned to XXX XXX XXX, LLC (above address).Please let us know if we missed anything or if you have any questions,Thank you XXXXXXXXXXXX Man oh Man did we smoke these deals...Lord I love this stuff.

*Do not pay any upfront fees*Do not pay excessive "Junk Fees" - There shouldn't be anything more than a doc fee, if any, some lenders charge nearly $3,000 in these junk fees*Make sure you are not paying interest on the rehab money while it is IN fund control (If applicable)*Make sure there is no Pre-payment penalty.

@Justin YanWe require HOA Certifications at times but I have never heard of a $250 fee- that seems excessive.  

My understanding of a Net Listing:Net Listing provision states that seller will receive a net amount of money (say 150k for their house) from any sale, with the excess going to the listing broker as commission (broker sells for 175k, keeps 25k for them self).

Should I focus on building my equity in the property or save my excess money for capital?

I know with my last one, with all the prorating for age, like 2 years on approx 7 year carpet life, only being able to charge for cleaning fees in excess of normal wear and tear, their portion only came to the security deposit plus $200 or so, so my management just billed them the difference and moved on.  

I'll try to explain the various levels of participation and how you can take passive losses against ordinary income.Under Section 469, an activity is classified as passive if the activity is a trade or business activity in which the taxpayer does not materially participate during the year or a rental activity.Section 469(i)(1) permits certain taxpayers who actively participate in rental real estate activity to deduct up to $25,000 of losses arising from the rental real estate activity, if the taxpayer cannot meet the material participation test required to be categorized as a real estate professional.The $25,000 permitted loss is reduced by 50% of the taxpayer's adjusted gross income (AGI) in excess of $100,000.

Purchase plus reno plus closing is going to put you in excess of 90k.  

That means a lender must give excess amount back to the borrower.

Each can give your wife $14K, so if the value of the property is more than $28K, the excess would reduce the amount they can transfer tax free on death.