Effectively, Uncle Sam has loaned you $1250.OTOH, if your AGI is over $150K, you won't be able to deduct that passive loss against your income.

If you're looking into existing mobile home lots with the infrastructure already in place, it may be more cost effective.

Direct Link ( https://www.legalzoom.com/attorneys-lawyers/legal-plans/business.html )

Bob Lowry The 2% "rule" is based around a 25-50K house and like Jon said assumes a 6% interest rate, so obviously as you start messing with the basic concept it becomes skewed and doesn't effectively work anymore.

On top of needing a lawyer, I kinda also need a hug right now, and a virtual one will do:)

I guess I just felt like water in an old basement when it rains heavily obviously doesn't negatively effect the structure of the home since it has likely been wet since 1938 ...and if it is not a living space, why does it matter to a renter?

Hi Mathew, thanks for asking about in effect the tax treatment of non refundable option payments, rent credit etc!!

As it stands now if you were to proceed and she stopped paying you would end up with a tax lien on your property you now have to pay effectively setting you up to pay 55K for the property.

This is very revealing and effective.

The article I co-wrote with him can be found by following this link:http://www.biggerpockets.com/blogs/2997/blog_posts/22522-8-habits-of-highly-effective-inner-city-landlords