I originally signed a lease of $800. a mon all utilities included, then 2mon into lease my rent was raised $50.

Literally all you need is a tape measure and utility knife, and time. 

You would not be able to utilize it on any of your actual financials or tax returns submitted to the IRS. 

Are you including capital expenditures, management, utilities and garbage, etc (if applicable)?

So; I realize most of these threads on purchasing pre-FC properties are for investment purposes, but, I wanted your thoughts on utilizing this same strategy to buy a primary home.Live in So Cal where listed properties are going for far above asking prices, multiple bids per property within 24 hrs, etc......What are your thoughts on mailing to pre-FC homeowners, in the cities I am looking to move to and see if I can get in contract on one of those?  

How does one evict a family member who has been living in the back house for more than 15 years and has not been paying any rent but only pays partial utilities when they are in the mood.  

For more information, see Publication 946.The following items increase the basis of property.The cost of extending utility service lines to the property;Impact fees;Legal fees, such as the cost of defending and perfecting title;Legal fees for obtaining a decrease in an assessment levied against property to pay for local improvements;Zoning costs; andThe capitalized value of a redeemable ground rent.Deducting vs.

.$25k in materials and laborMonthly holding costs: $557(int payments, taxes, utilities, insurance)House info as purchased:House built in 1971 - Solid B neighborhood - Great Schools2081 sq ft4 Bed, 2.5 BathNew RoofNew WindowsNew HVACVinyl SidingWork to be performed:New cabinets and counter topsLaminate downstairs and carpet upstairsNew vanitiesNew light and plumbing fixtures(tubs staying)New water heater Paneling removed from den and replaced with sheetrockWindow removed from eat in kitchen and replaced with slider to access the back yardSmall deck built off of sliderAnd obviously paint throughout.We will probably price it under market value and hope to sell it quickly(30-60 days) at $125k which would give us a profit(after commissions, closing costs, and carrying costs) of $22k-$23k.  

And Rehab Costs would be the cost to tear down and construct the new property, including all hard and soft costs that aren't factored into the Fixed Costs.For example, if I have a house that I can tear down and rebuild a 2000 sf property that would sell for $400K; it would cost $100/sf to tear down and rebuild; I'd have $50K in Fixed Costs; and I'd want a 20% profit on the resale price ($80K), my max purchase price for the tear down would be:MPP = $400K - $50K - $80K - $200K = $70KKeep in mind that the rehab costs must account for all of the following:- Site Planning- Zoning Approvals- Utility Installation- Permits/Impact Fees- Environmental Studies- Etc...If these costs aren't factored into the per-square-foot construction costs, you need to factor them in separately. 

Our appraisal came back at 170K, citing "Fair" functional utility because it is a 1 br/1ba & a recent foreclosure on a comp home lowered the appraisal value.