Debt allocated to an account under this paragraph (c)(4)(i) must be reallocated as required by paragraph (j) of this section whenever debt proceeds held in the account are used for another expenditure.

Originally posted by Account Closed:@William W. put everything you own in an LLC or trust :) including your personal residence.

Account Closed PA is a great place to invest especially the western part of the state.

On the inheritance tax side, however, I believe the formula take account of the fair market value --- even when sold at a judicial sale. 

I will also create an upfront operating account fund to cover any unexpected issues that occur before I build an adequately sized reserves account from the ongoing savings. 

If you are really cash flowing $850 per month (including maintenance and CapEx) then you are making a 3.7% return on equity annually.

**With that said, aside from the credit report and liens on the other property, the lender could also see the deposit/wire from the private money show up in your bank account (they will be asking for bank statements for your down payment and reserves) and if they see the deposit, they will ask where that money came from.

Make sure that you are accounting for all expenses.... vacancy and maintenance, and are there any landlord paid utilities?

I accounted for this with my cash purchase offering to come up with an all-in cost.  

If I understand the income after expenses is estimated to be $38071 annual, $3166 monthly.