This is especially true if the property requires significant upkeep or if the heirs live far away.Owners of Distressed PropertiesSellers who own homes in poor condition and can't afford the necessary repairs may prefer to sell as-is rather than invest time and money into renovations.Landlords with Problematic TenantsLandlords who have been dealing with problematic tenants, frequent vacancies, or costly property damage might want to offload the property quickly to cut their losses and avoid further hassles.Owners Facing Major Life ChangesSignificant life changes, such as health issues, retirement, or downsizing, can motivate people to sell their property quickly.

You could look into syndication, however even that will require a significant upfront investment in legal and marketing fees.Good luck!

A fund (like a 506c) that @Chris Seveney and @Evan Polaski pointed out allows you to pool resources and spread risk across several projects.Def more attractive for investors.Pro tip: SEC exemption might be required so make sure you know your sh it and value prop here.

You can rent by the room, which can maximize rental income.Parent Guarantees: Many student leases involve co-signers, usually parents, which can provide additional financial security.Low Vacancy Rates: Due to the high demand, vacancy rates tend to be low, especially if the property is close to campus or in a desirable student neighborhood.Flexible Lease Terms: You can structure leases to fit the academic calendar, which means you can adjust rents annually based on market conditions.Cons:High Turnover: Students typically stay for shorter periods, leading to higher turnover rates.

No LLC Needed: This keeps things simpler and avoids the state income tax associated with forming an LLC in Tennessee.Steps to Set Up Tenancy in Common:Purchase the Property: When you buy the property, instruct the closing agent or attorney to list both of you on the deed as tenants in common.Draft an Agreement: While it’s not legally required, it’s smart to have a written agreement detailing each partner’s responsibilities, the split of profits, and how decisions will be made.

Exact same story, red tags, our unit not red tagged but had significant damage, promises of progress, had to take a trip there to get the desired progress, insurance cost roase more. 

Buying in areas with a lot of good jobs and desirability is the key to growing wealth from rapid appreciation.

Buying cheaper means more properties but probably the possibility of less desirable tenants in that area. 

Assuming they passed all requirements for the deductions, what's the chance of an audit?

Banks are required to offer you all options that are possible and in your case, it's a short sale.