@Adam Macias I'm not surprised by this report either.

@Benjamin Greiner just commented on another post about a tenant threatening to sue over mold issues - that tenant neglect caused.We told the landlord their lease should have had provisions in it to hold the tenant accountable for the damages.Standard leases only cover the basics, so you should Google all the leases you can for ideas to take to an attorney to include.

I have never done a land trustWe have a living revocable trust that we set upHonestly I should have done it 15 years ago but did it like 6 years ago.I do not see the need for a land trust unless you are a politician, actor or athlete (someone who is famous).I have done business with multiple billionaires (not bragging but trying to make my point) including several that owned professional sports teams - and even they did not use land trusts…

It can be used as leverage for other ventures, including room rentals or as security for further loans.

You're talking needing plans, architect drawings, engineering study, a zillion permits and inspections.I just don't see a lender lending on this kind of deal without that person having major experience that includes some ground up or extensive rehab work.If you wanna "break in" to the financing world, it is not impossible at all. 

The preliminary report says we would be eligible for ~$390k in eligible deductions.

Do they usually do a monthly flat rate (this would include the winter when its not needed)?

During this process the late payment got reported to collections and I shortly after completed the payment.

What is included in the rent? 

Dealing with nightmare sellers, including a dog left unattended for days, a break-in, and hidden foundation issues sounds like a real challenge.