Tax preparer doesn’t like the shoebox of receipts anymore.

The program looks at location, property value, amount owing, interest rate, taxes, insurance, rents, condition, etc and several exit strategies.When we make an offer to buy, we can offer cash, subject to, wrap, seller financing, lease option, seller carryback and so on.Obviously if we wholesale the property, there is no carrying management needed, and if use a lease option to sell, the optionee is responsible for maintenance and repairs.

DSCR loans typically have higher rates, pre-payment penalties, and may not let you pull as much money out as you would like because they will be based on 2 factors: the appraised value of the home and how well the rent coming in can cover the PITI payment each month (Principal , interest, tax, insurance). 

I am at risk if something happens in the property but it discourages me from putting in a claim (which would cause my insurance to go up).  

Though we can do that, LLC is preferred by most of my clients.o Individual credit will be used for determining max leverage (80% LTC is highest available) and interest rate.o Personal income, taxes, and debt-to-income ratio will not be utilized.

Why not sell at a stepped up basis and pay zero taxes Uncle Sam?

My question is what are the tax implications of this?

Never heard of a performance deed.Maybe have them sign a Quit Claim deed to you that your attorney holds in case they stop paying?

If your bookkeeper and tax pro like Quickbooks, you should use that.

@Hemant Jain My only advice on investing in Texas is to be careful about the property taxes.