As to asking the IRS reps, let me limit my comment to just three letters: LOL

@Brian Rocha -Something to note is lenders will oftentimes slightly limit leverage on the purchase of a hard money loan or a "fix and flip" loan if you are doing borrower funded rehab.

The city wants to tear the property and surrounding properties down Zillow said it’s worth 38000The city offer me 13000.I could use some adviceHard to give advice with limited information, but as a general rule, the longer you wait and the further down the line their project is the more valuable your property will be to them.Zillow (and all automatic online) estimates are very unreliable, so don't base on that.

@Georgeos Partheniou basis limitations and DFDs are two separate topics.

You don't want to sell at a loss either.  

I've only had one listing transaction from my BP leads.Most are complete noobs or have limited REI experience with a rental or two.

That's a terrible idea.He should either install a smart thermostat that allows him to set limits, or he should remove her from the property.

It's simply factual:  you violated the lease by smoking, stop it, remove the resulting odor and that a repeat action could result in eviction and loss of security deposit.  

In our still relatively limited experience, seller financiers are usually looking to get a higher asking price in exchange for the favor of the private loan. 

Unfortunately, I see a growing trend of a lot of service members renting their homes at break even rates or at losses.