Quote from @Nathan M kiefer: Quote from @Patricia Andriolo-Bull: Am I understanding that the current market value of the properties are over $1M each?

I understand my new rate would be higher than my original 2.4% but I would like to convert my fha to a conventional loan, so that I can use an fha loan on my next prop and not have to put down 20%.

Understanding the benefits of Real Estate and more importantly, understanding the deficits that can come with it.

Thanks, really wanted to understand what's the norm these days.

@Frank RizzoYou should identify exactly what it is you are doing for him and make sure they understand that the risk is their responsibility. 

@Michelle MayfieldI am a real estate agent and investor in Houston, TX.Katy, Cypress, Spring, some parts of Houston, Conroe, Tomball, Pearland are great markets.These cities tend to command quality tenants, and they have great schools.Get in touch with a local agent or investor and shorten your learning curve and save you a lot of headaches as they tend to understand the market better.All the best!

I understand this is for your parents, but I'm thinking future. 4.

It is my understanding there has been some case law stating that emails suffice, however I wouldn't bank on it and whatever you put in writing, make sure it is crystal clear.3.

But you can still treat it as resulting in Ordinary Income even though it is reported on Schedule E, which lets you properly report in accordance with the tax results it seems you are shooting for under the tax return loophole.If your CPA is looking at switching it between schedules to get that tax result...it sounds like they don't understand the reporting position fully and/or they just don't know how to use their own software to address it.In summary, based on what you are describing for the situation, it should go on Schedule E, with what sounds like the resulting refund of $17k.

Not that the intent is back out, but one thing I'm trying to do is gaining a solid understanding of no-risk EMD (as long as deal is closed within a certain timeframe), - how to explain the risk reversal to the seller - and also the buyer.I would be most thankful for the help and if you wanna join my network of MD/DC/VA based REI let me know.