You must report rental income on Schedule E and can deduct rental expenses like repairs, maintenance, property taxes, mortgage interest (allocated between personal and rental use), and depreciation for the rented portion.

Quote from @Spencer Thomas: View report*This link comes directly from our calculators, based on information input by the member who posted.What do you all think of the deal and how I analyze it? 

Quote from @Caleb Brown: Someone else asked but what would market rents be including the extra storage?

Hi Kin,Transferring your share of the property to your brother may have tax implications, including gift tax if the transfer is considered a gift.

Most lenders I've worked with will use the lesser of the current rents or market rents reported by the appraiser when calculating your debt service coverage ratio. 

With investment properties, most lenders I work with prefer to have an address to work with in order to provide a "soft" quote, which does not include a hit to your credit.

They lower taxable income for federal taxes but not for FICA.However, employer contributions made by the S-Corp are not subject to FICA and count as a business expense.Make sure your W-2 correctly reports wages, deferrals, and FICA wages.

Just because they included that clause in their contract doesn't make it enforceable. 

So i cannot comment on some of the posts on their reporting etc., all i can say is the first time I dialed their number they answered. 

Reporting the proceeds you pay to seller on a 1099 sounds reasonable.