(Source: Investopedia).As a former banker, we did these type of loans on a regular and routine basis.

I don't want to force either tenant to keep it spotless everyday as that seems very micromanage-y and overkill.  

Some states also require to show a bank statement to your tenants on a monthly or quarterly basis showing the funds are in an interest bearing account.

You were dealt a bad hand, "the man" is keeping you down, you're a minority and can't get ahead because of slavery/racism/whatever, you're a single mom, you were raised in poverty by alcoholic parents that kicked the crap out of you on a daily basis, you can't find a good job, your market is too expensive . . . 

Am I correct that my tax basis is $162,000 ($142k + $20k)?

I use QBO, so I just log on my cell phone, because I can snap a picture of the physical receipt or invoice to be saved with the record online, and then I can throw it away.Acquisitions: I am not actively trying to grow my portfolio, but I do have alerts setup through the MLS that give me emails everyday. 

@Michael Malter I would suggest getting with a local bank that allows you to refinance on a short term basis.

In fact that's the fundamental basis of con man's strategies, hence the term "confidence man/con man".  

They should not which is why cap rate is based on existing NOI not forecast NOI.If a property is so mismanaged that the NOI is not close to what competent management will achieve, you are unlikely to be able to purchase the RE using cap rate as a basis. 

@Jonathan Greer I have 12 crews in the field everyday, mostly installing blown-in insulation in attics and other spaces.