I must still report the full $200,000 on my taxes and can't take the $40,000 as a deduction - which seems odd because the lawyer will also be reporting the $40,000, so it appears that chunk will get taxed twice?

I wouldn't blame the tenant but what I would do is paint the mailbox (and the post holding it up) a random color so if somebody hits it and the paint rubs off it will be easier to figure out who is at fault (as the paint will likely rub on the car that ran into it). 

However, the home inspector found mold in the attic and it doesn't appear to be "active" mold as it looks like it was resolved a few years prior when they repaired the roof.

So far there appears to be fraud obtaining the modification and by the servicer in filing the fraudulent modification with the Bk court by the servicer.

Two areas where I build a safety margin are cash on hand (I want to be able to make   x  number of payments with no correlated income) and spread (the difference between rents and all expected expenses ie expected cash flow--the higher this number is the easier it becomes to make the debt payments)So for example say I am looking at a duplex for 100K and I have 50K in cash. 

So had the seller signed the offer, I'd have some recourse if he tried not to pay my commission, but all verbal at this point, easier to walk away when it got shady.I also like to hear that some investors do waive inspections. 

If you were in a different county, you might be able to get away with it somewhat easier. 

Of course if you have either A class properties or enough for the property manager to care it might be easier.

Keep in mind that interest rates appear to be rising, if your rate resets in 5 or 10, consider that an increase in a few percentage points may do to your debt service.  

It would be easier to find a house with a detached garage and convert it into a dwelling.