Set the rent, utilities split, file a schedule E, take the depreciation deduction, etc.If it doesn't succeed in the "break up with her" part, it should provide the evidence that ownership was not part of the deal.Like I said, not a lawyer, not legal advice, and you need the real thing.

Beware of "reality" advice that you read in forums, especially if that advice runs counter to local laws.In some areas, once you have a judgment, you can levy the personal property to collect on the judgment via sheriff sale of the personal property.In the end, you just might get to keep the stuff, just follow the law so that you aren't setting yourself up for trouble.

I carry earthquake insurance on the houses I do own but unfortunately there is a 20% deductible.

We have done 90% of the work ourselves and hope to realize a net profit of $35k when we sell (that is the number I arrived at after deducting all associated sales and renovation costs).

You deduct your wholesale free along with all of these costs and the 'net' is what your buyer will make.

Long-term with no other problems gets weight, too.Plus, you can probably deduct the remainder of his late fees from his security deposit -- if, that is, he gives you proper notice.

That's about the same payment as a 2.5%, 30 year term loan, though the loan balance after 10 years would be $597K, not $416K.You're not paying any interest with these terms, so you'll have no interest deduction.

Since you are new to all of this you may want to google to see if there is a local real estate investors association in your area to see if someone can answer your questions regarding eviction process.Of course... you could just tell the tenants that if they don't pay, you will use the security deposit for the unpaid rent, and then levy on them any sums due for damage to the property which would have been taken care of by the security deposit... and that you will file in small claims court to reclaim your expenses.What ever you do... be professional... keep written and follow through with everything you say you are going to.Best of luck.

A good CPA is well worth the $ you will pay, to have them find ALL the deductions.

Cash deposits or other deposits do not constitute income, you must deduct your expenses to arrive at income.