He kept threatening me with extortion, libel, and slander charges.he just wanted me to pay his $700k in taxes deliquencies iback with violations of the contract I never committed. 

The new investment earns $24,000 a year, but the mortgage + the equity loan cost will be $22,332—and that’s before you account for taxes, insurance, maintenance, capital expenditures, vacancies, etc.

Make sure you work with an accountant specializing in real estate taxation come tax time. 

It was nearly 5 years with taxes not having been paid after a death on the property.

Is it recommended to have a LLC and who can help creating a LLC (tax consultant or lawyer)? 

My mortgage is $4500 but going rent for the area is $4,095 and not in need of loss of profit for tax purposes and needing more equity to make the investment worth it. 

Is this a condo, or is it owned fee-simple?

I would choose Candidate #2 providing you have acceptable verification of their income - bank statements that multiply out to what the past couple years tax returns indicate on the business.

But you also have to track your material participation time in your property(s) if you're trying to qualify to use your real estate tax loss to offset your other income. 

Here are the key points:Lender Policies: Most lenders require proof of stable rental income, typically shown through previous tax returns or a history of rental payments.