My goal was to raise awareness to the OP of the whole DOS situation.

But I see it in my farm areas and I know it's happening where the OP is.  

This means that it is a "pass through" entity, to your personal tax return.The thing I still wonder about is that the OP wants FHA funding, which is usually a sign of very few assets.

Btw, here is an answer to the OP's original question:http://www.biggerpockets.com/forums/311/topics/73160-primer---estimating-arv

Information offered to illustrate the potential benefit of buying the trailer.To answer the OP, if you can stand living there, maybe not a bad idea.

I believe the OP indicated that the property was a fourplex and that he lived in one unit and rented three units out. 

- 1991 Honda Civic w/ 150K miles (recently purchased after 250K mile truck hand-me-down that I traded for a coin-op washer and dryer for a property) - Was making $10/hr at non-profit when I graduated from college - $0 in cash and net worth when starting in 2012 - Lived in crappy, older apt w/ 3 others for $600/mo under rent control in SF - Picked up free couches off the street to save cash- Used to borrower weekly from friends to have enough to get by - Used credit cards to save up for first FHA 4plex purchase - In last 2 years, bought $1MM of RE and over $150K in gross rents!

What they can or may pay is subject to their broker's approval, in fact, everything an agent does in real estate is subject to their broker's approval as the broker has responsibility for that licensee.Back more to the OP's arrangement, that arrangement as to an exclusive agreement for 14 months is one I would generally not do as an investor, the term is excessive.

I have to agree to Jon's disagreement, simply on the basis of being a lienable item as opposed to a collections affair, but I still don't think the OP should or need be held accountable in the end.

Those are the people who could get hit big time with another drop, if there's one.I don't know about the OP's friend, but sometimes people are afraid to make a commitment as big as buying a house, they tend to look for reasons to stay on the sideline.