hi karl. sounds like you actually have a good start here in this business. bill is partly right. of all the answers here, i think he has some good advice. that being said, you need the think outside of the box here. you said you will have $80k into the place if you fix it up to basic standards, and it would be worth $150k. ok, those numbers are great. but here is an idea you don't seem to be considering. you own the house free and clear. no mortgage to anyone. you and your buddy want cash out of the deal. then your only option right now that really makes sense is to finish the place to basic standards, go refinance the place for what the bank will lend you, split that money and then rent the place out to make the payments. you get the benefit of getting all your money back, plus a few buck on the side i would bet, and when you rent it out, the tenant is making your payments. whats wrong with that idea???

Don't leave income on the table just because you will be taxed on it.3) Most real estate expenses are deductible in the year you pay them, especially if the benefit is immediate (like a utility payment or property tax).4) Some expenses are prorated through the life of the improvement, such as depreciable buildings and roof repairs.

I want to get my license to gain additional education as well as the other benefits for personal investing in residential properties.

And I have accounts with 5 local credit unions as well (Lines of Credit, checking/savings, business).Business accounts with Wells Fargo in addition to the others.Each has their place and benefit, I try to maximize each ones benefits, not just limit myself to one or two.  

I believe we could make a part of our contract with him, though, that seller agrees not to attach any debts or access the equity, though, for the term of our lease and any extension - in effect, that it accrues to the future property buyer's benefit. 

Make sure to take advantage of all the benefits of the site

I know you and your partner will benefit greatly from the tools and the knowledge and the support you will find.

I am wondering if there are any benefits of setting up realestate as a LLP or a corporation over not.

We want my Mother listed as an owner and I am not sure if listing me as an owner will be a benefit when she passes or not.

If you are going to get a note on an out-of-state property, why not just buy an out-of-state property and get the same returns plus the over-so-passive tax benefits (cash in your pocket) and equity build?