Insurance would be listed separately in Box 4.http://www.irs.gov/pub/irs-pdf/f1098.pdf-Steven the Tax GuyYour guide to IRS laws, rules and regulations.

-Steven the Tax GuyYour guide to IRS laws, rules and regulations.

They keep changing the rules, laws, regulations, etc to keep you down.

If I get a year out of the vinyl it was worth it - but I'm hoping much more.My father-in-law is a paint contractor and he vouches for Duration.

Cash transactions can be closed at the kitchen table; owners title policy is not required by law.

I'd bet the "They bought the call option that is now worthless" and "Too freaking bad" approaches taken by investors engaging in deals like this is why that law exists.I'd bet if you said to these buyers "you bought a call option that's now worthless" that they would look at you with the deer in the headlights look.Having said all of that you likely shouldn't have sold them an option to start with because the investment is not suitable for unsophisticated buyers.

Alas, I don't think I'll do that again, with SAFE laws now in effect.

This is important because if you get sued and you haven't done what is required by law (i.e., hold annual board minutes, etc.) the plaintiff may be able to 'pierce the corporate veil' and get to your personal assets.

Based on my pay/allowance calculations, I want to keep my purchase price below $215,000, to leave room in my budget for renovations/repairs/taxes/unforeseen expenses, and will base my final purchase price on comparable rental properties in the area.After 3 years, I would classify the property as an investment property, and hold under an LLC - relevant laws permitting, I would be my own landlord.

These are the key factors you need to be sucessful in the model you propose.In addition, simultaneous closings (where you use your end buyer's funds to close your purchase transaction - using buyer C to close the A-B transaction) are very difficult at best these days due to the many law changes and the title companies not insuring the transactions or willing to perform such transaction.