During this time, all cash inflows and all cash outflows count for the return calculation.

Count me in as well, would love to meet great people in my local area and add value in anyway I can.

But this is new, so he couldn't count that due to lack of history.

The appraiser reviews the properties that have sold in the area and selects the most comparable based on condition (and yes cosmetics do count). 

Should be at least 10 x 10 room with a window You do NOT need a closet to count as a bedroom as generations before used armoireUnlikely they will consider it a bedroom if you need to pass one bedroom to get into another In Boston, many units have dining rooms that have been converted to bedrooms, appraisers know this and while they wont report you, they wont consider it legal bedrooms

Good credit.We are doing this in hopes of ridding the tire kickers.I had someone call today and ask if unemployment benefits count as income...I told him I needed to ask the owner and would get back to him.What do all think?

Nothing wrong with each of you doing fha for duplex if you guys qualify for it and abide by their owner occupancy rules meaning each of you will be owner occupying the property for the min 1 year duration.Also, when you cosign for someone, even though that loan will stay on your credit report for as long as your on the loan….after 12 months of successful, on time payments by the original borrower, the loan will no longer count against you for your debt to income ratio.hope that makes sense and best of luck!

If so, each of you young folk can toss up to $6k into a Roth each year if you have qualified income (active mil does count :)  ). 

Also, in terms of tax basis, you also have to account for the depreciation taken (or not, the IRS doesn't care if your grandma actually claimed the depreciation deductions or not, they still count it) while the house was used as a rental. 5 years of rental to your brother, assuming at least $300k of the current value is the building, not the land (just for easy math). $300k/27.5 (depreciation schedule) = $10,909 * 5 years = $54,545 in total depreciation deductions (or thereabouts) for use as a rental.This amount gets deducted from your tax basis and is recaptured at 25% when you sell.

Don't think about it, count 5-4-3-2-1, then boom, action, and execute whatever you were having second thoughts of.