I would agree if we were talking about financial statements, but as I understand it, we are talking about tax basis reports.For tax purposes, one can use a modified cash basis when filing.

My agent is saying that we are unable to split the contract that way (or reduce the purchase price), so I'm trying to figure out options.

We are full-time investors ourselves (I'm Director of Acquisitions for a private equity firm); and our income comes from our investments.

Beyond that, real estate is largely local; in my market we are not seeing anywhere near those numbers.

Also the home is a subject to, where we are paying the remaining 3% mortgage, so a full refi would not be a great answer either. 

We are currently living just south of Boston and are looking to purchase a 2-4 unit property in which we would live in one of the units.

I am always open to learning about other companies/entrepreneurs and how we are all trying to create better opportunities for investors.  

We are well connected and I'm sure I could find you a buyer quickly.

We have an insurance policy on the rental house (through State Farm), that includes a personal liability section, which is essentially equal to our current net worth.Given that a tenant could sue for more than this if an accident occurred, we are thinking about adding either LLC or an umbrella policy (or both) as extra protection.Any advice on which way to go, and if LLC, any recommendations for a law firm or company the Indianapolis area?

Hello, we are middle of purchasing our 2nd property.