Buy your profit by changing the purchase price, not by changing what you think it will appraise for.refinance - the best advice I can give is to talk to your lender before you purchase.

If you give a profit and loss statement that looks in line with income and expenses and the tax return is completed per that statement, who is at fault?

I am budgeting for $30k profit. 

Are there capital gains tax problems/options here based on their selling of the condo - profit or not?

Your Financial Goals are as simple as generating two very basic sets of number...dollars really:1)  Make enough Profit (lump sum returns) to Pay Off your personal debt...ALL of it.2)  Get enough CashFlow to "cover" your monthly bills...ALL of them...and to replace your current method of doing so.The overall Plan, is comprised of a series of Measureable Milestones made up of groups  of the individual Financial Goals (Debt Payoff, Cash Flow)...all lined up in a row.  

They can supply the capital and you put some sweat equity into the deal and get 30% - 40% of Profit! 

Keep in mind the vast majority of tenants are irresponsible.I personally would never invest in a SFH as a rental however providing you are prepared to leverage 80% and reinvest the profits this property for the time being is a worth while keeper for you.Tenants will beat the h*ll out of it so decide if it is long term and you don't care or sell in a couple of years before there is too much reno work to be completed prior to selling.

Purchase 50% of the duplex above and generate $150 in cash flow per month plus more equity...likely 20 to 30k.

You'll minimize your risk of failure and improve your probability of profit/success with a larger reserve. 

impact rated windows and NG/LP whole house standby generators with ATS are the new swimming pools.