The current owner self managed, and obviously didn’t have this tenant trained in well to make rent a priority.The rent is currently $1000/mo. vs. $1200/mo. market value (based on onlIne ads), which is conservative for a 4 BR house in St.

He would obviously pay the first months rent but hold the last months rent and the security deposit in trust.

This property would be a total shot in the dark but has huge potential to be a great flip and also a decent cash flow property.

Pricing for the lower credit scores is higher for obvious reasons.

I was obviously not happy with this, but decided that since I had already spent two months showing John houses, I might as well get paid $2000. 

Some obvious things are of course obvious enough even for me to see without having a giant red sign with blinking lights on it.

Total monthly costs would be a little under $1000.

Hello,I recently found BP and have been devouring everything I can from forums to podcasts.  What am amazing resource.  My wife and I recently (February of 2018)  purchased our first rental, a 3 bedroom condo we paid ...

@Susan O.Non-qualified use is the period of time as a rental (not qualifying as your primary residence).Qualified use is the period you lived in it (qualifying as your primary residence)Your scenario would probably shape up into something like this...Daughter rents for  - 3 years (non-qualified use)You live in it for  -      2 years (qualified us)Total time owned -    5 yearsAmount of exemption available for primary residence - 40% (2/5ths) of the gain up to the $250K limit for you.Plus you recapture all depreciation.And don't forget that a property you convert into your primary residence that was the subject of a 1031 exchange has an overall holding requirement of 5 years. 

That's amazing that your tenants cover your PITI, we're just looking to decrease our housing expenses, but getting rid of them altogether would obviously be ideal.