Here's a summary of the economics.They purchased the property for $280,000 in 2004.The loan balance is about $178k.Monthly principal and interest payment is about $1,265 with $709 currently going to interestProperty taxes are $4,116 annually and insurance is $1,000.Currently the house is vacant for the sale so there's no rental income.Therefore, the monthly burn is -$1,135 (ouch).For the sale:Property was originally listed at $335k and they received 0 offers at that price. 

I wish I had a 15 year note as the original purchase.

Originally posted by @Marlon Long:Houston we have a problem. 

Originally posted by @Thomas S.

Adjusted cost basis is your original purchase price plus capital improvements minus depreciation. 

Originally posted by @H W Beckley:@nathan g that sounds like great advice.

Originally posted by @Solo Malik:Anyone starting in the Fix And Flip in Fort Lauderdale? 

I had read somewhere that you can roll lawyer costs (title, etc) into basis cost as well as origination fee and deduct for life of the loan.

Originally posted by @Karen Rittenhouse:@Jay HinrichsThanks for this.

Many of the larger property management companies do a market survey where they share info and data on their communities to ensure everyone is consistent with their rents.