I am going back to the states in a few weeks and am going to try to find some local banks instead of BOA, my long term bank, who can't accommodate unusual circumstances for a cash out refi.Best, W

Correspondingly, all business income taken from an LLC under similar circumstances is subject to self-employment taxes.

If we assume we can rent it for $800, with the parking situation, the financials are very attractive.My question is, are we taking too much risk making this decision to buy based on the assumption that we can rent out the 3/1 under these circumstances?

Whether that is good advice or not depends so much on individual circumstances, so we cannot comment much more than that regarding such generalizations without knowing a whole lot more about the specifics for the individual in question.

Is he willing to compensate you if you bring him a buyer under those circumstances?

I know they have those "special circumstances" under which it's acceptable to have two, but I'm talking about closing out one and opening a new one.Any thoughts?

personal i would consider an LLC  due to the amount of debt, liability and potential loss that insurance may not cover depending on circumstance, but feelings are mix among the community, talking to a lawyer with REI-exp would be advised along with a tax professional before setting it up is a good idea because if you structure it wrong it will make a headache at tax time, definitely dig into the forums here on BP an simply search for LLC or should i LLC and dig around there is limitless advice available on here ,  hope i was a little help in your decision or steer you toward your answer.

I know how you feel when you walk through and look at private items and or personal items.In those cases we just hauled everything to the dump... and got to work. if the old owners are there are in contact of course we accommodated them on retrieving their items.I suspect in this case you would be fine and I personally would not store anything... from the description of circumstances you have laid out.

Think of it as flipping "cash"...using the properties as the vehicle your cash is riding...in and right back out of these deals (with friends).That is how money works...and it follows Golden Rule #1 of my 2 Golden Rules of REI:"Under no circumstances, ever, for any reason or rationalization, ever....EVER,...Spend your cash.  

Amateurs merely guessIf you find out where the laws are, you can get more guidance from your attorney by asking his certain laws apply under various circumstances.