Here's the situation.. we found a great home which can easily become a 4 bed 4 bath close enough to a college so we can rent out two rooms easily.. we have had a job for two years but the problem is that the house is located an hour away from where we work and our lender says this will not look good to the underwriters especially since we don't make so much there (can't claim tips).

I just don't understand the buyer mentality.I helped my Mom buy and fix up her first rental over the last couple months.  2 bed, 2 bath condo in the area of Havana and Alameda (technically Denver but borders Aurora).  

He wants to lease it to me until his death to avoid the tax.

Now that you are in bed with this property, figure out how your taxes can benefit from improvements, etc.  

It's also traditional for guests to bring their own linens and towels, although there are now linen rental services that will deliver and pick up (but won't make up the beds). 

Once you spray the carpet and get the death out of it you set it up on saw horses to dry  .

PURCHASE PRICE $2,100,000 PLUS 3%Multifamily 6 TURNKEY UNITS 6 X 2 BED 1 BATHBuilt in 1963Current Rents Per Month $11,904Market Rents $13,200ANNUAL SCHEDULED GROSS INCOME $145,488Total Expenses $46,106NOI $95,017MUST BE CASH………..

Think about the function of an equity contribution vs. debt in the event of any suit, bankruptcy, disolution of the business, incapacitation of a partner and heirs moving in to the company in the evnt of a partners death.

I try to only buy nice homes (3 bed 2 bath) in good neighborhoods with solid rental history that appreciate 3% + per year and I like to have at least $200.00 per month min positive cash flow, per property after paying all expenses.

Filing a lien, making it a formal transaction also means that the debt or asset will be covered by law in other issues like death, bankruptcy, etc.