@Fantasia BowserYou have been given the proper answer, but on a side note, as it appears you may not be entirely familiar with basic contract law, you may be lacking some critical knowledge in other investing areas too so it would be wise to consider partnering on your first 5 or 6 deals with an active local investor so you can learn how to properly enter and exit a transaction without causing yourself potentially serious ramifications. 

A go-getter with the proper attitude cannot be denied. 

I also know a bit about project management, so if we decide to do a more major remodel on an investment, I can properly plan it out and keep it in check.I just wanted to introduce myself and say hello to everyone.  

None of it is worth very much money, but I want to make sure I follow proper procedures.Does this fall under "tenant" laws?

I'm trying to understand when the proper time might be to throw in the towel and jump into a short sale.We purchased for 450k in 2006 at market peak, lived in the house until 2011, and then rented it out for $1400.00 which is the going rate for the el paso/cruces area hoping the housing and rental market would rebound.

Is it possible to get a good deal and be able to rehab the house and get proper insurance or will i be forced to rebuild anything i get thats on the water??????? 

This of course in not suppose to happen with proper remediation but it is better to be safe than sorry.

I just have to figure out the proper way to work it out..Last year I shot myself in the foot by declaring 'unreimbursed business expenses' that were actual expenses. 

If you have been accounting for this improperly that indeed will need to be cleaned up since it sounds like you may have not given proper credit to the Buyer/Borrower's payment to principal.Stop making this about a regulation that you do not really understand and make it more about what you are doing and how it was actually setup.  

I will say this..most agents have no clue how to structure it properly.