Really, most negotations aren't, whether its real estate or buying potash producers.

Intrinsicly speaking, if your management company can produce enough of a return to be an attractive investment than I see no reason why you could not build a business plan based on that premise.

OR some times require equity in other income producing property.

I don't see it as having a huge impact on tax compliance or in producing more taxable income.

Whatever number you see listed by the seller or their agent as the NOI should be assumed to be the best possible NOI they've managed to produce, if its less than 50% of the gross income.

I am unsure of how to handle the deduction of expenses on this house since it has not actually been rented yet and has produced no income as of yet.

Likewise, consider whether you could come up in price if they made some other concessions on their end.Be creative...there are lots of ways to reach compromise when you get innovative...

[/quote:Here is my take on this issue;Any property held to produce income is debt-financed property if at any time during the tax year there was acquisition indebtedness outstanding for the property.

The way that we are forcing appreciation is to first look at a residential property as an income producing dwelling.

How do we use our collective influence to produce a more investor friendly atmosphere?