Is there a formal contract format or will any general real estate contract legal in the area suffice?

(You also may be able to sue for legal fees as well, but I don't know)If he didn't return the deposit I personally wouldn't do anything. $139 just isn't worth any more headache.

Even after all that, there is still other things to discuss because deal making is very fliud and there are different pros and cons on the tax and legal sides of each path you take.That's why all the answers from CPAs and lawyers are "It depends."

If you go that route, you should still have a real estate lawyer look at your contracts to ensure they meet your local legal requirements.

Here's a few others, if you're trying to detail these out.6) Insurance7) Make ready costs when one tenant moves out before another moves in.8 ) Discounts given to lure in tenants (aka "economic vacancy")9) Advertising10) Legal fees11) Court costs12) Property management (which you can earn for yourself, if you do this yourself.)13) Major repairs (roof, furnace, plumbing)The problem with many of these is that they are sporadic.

Operating expenses include taxes, insurance, management (even if you do it), maintenance, advertising, utilities (at least during vacancies), capital expenses (although not technically an operating expense), entity maintenance, legal fees, evictions, court costs, evictions, damage done by tenants in excess of the security deposit, I could go on and on.At any rate, you left out all of these expenses, which means your negative cash flow (even with your interest only loan) would be a monthly LOSS of about $768 per month (over time).Good Luck,Mike

Maybe there is some legal issue.

Nevertheless, I find it very troublesome the feds can push to modify existing, legal contracts because one of the partys is having problems.

A trust much like a corporation is a "jural person" it can sue, be sued, it has a separate tax id number and is for all legal purposes a separate and distinct entity from the person who is a party to the security instrument.

I told her that legally, she would probably have to evict him to get him out.