After going back and forth for a couple weeks over e-mail the issue was finally resolved.

If you borrow against a rental property and use the proceeds for, say, a vacation and a new boat, the interest on the loan will not be deducted on Sch E as a rental expense.

You can start deducting expenses, like maintenance, utilities and depreciation on that date before you get rental income.I could send you a more information if you wish to PM me and start an e-mail conversation.Sheldon

Thanks for the quick reply JonI was more thinking of doing purchase with owner financing so i would offer 5.9 purchase price give the 2.4 down payment and try to get 18 month no payment / interest. reposition a little. take a look at these expensesProperty Taxes (1.163% of $9,450,000) $109,904Insurance $ 24,921PG&E $ 67,482Garbage $ 40,136Water/Sewer $ 49,246Payroll (Resident Manager, etc

It was just like this one: http://www.realtor.com/realestateandhomes-detail/40237-176Th-Street-E---Littlerock_Palmdale_CA_93591_1114442001 Again, different line of business from what I do as an investor (still costs about 3-4 Indiana houses - obscene!)

By implementing the Land Trust along with the Option Contract makes for a smoother and transparnet transaction.If your interested in knowing more about our services feel free to contact me via e-mail.

I'm going to be travelling the next 3 hours, so I can't reply to e-mails or posts for awhile.

Originally posted by Anthony E Russell:Are 3 bed, 1 bath rehabs, that are less than 1,000 square feet worth investigating?

If you don't have one or can't find one, e-mail me and I'll send you a copy of mine.

His e-mail is: [REMOVED] I am not sure if I can leave that e-mail in or not.