They should just call them FTL's (future tax losses) @Taylor Green- This more like "mezzanine financing" which is a hybrid & not a typical 2nd position note & TD.

So we were stuck with a $200 a month loss for a year.Don't count on people paying more once they're installed.

.- liability -- have insurance, and also have a solid lease that attempts to indemnify you of any and all loss to their person and property, as well as their guests.I ban fire pits, swimming pools, trampolines, fireworks, waterbeds, etc.

They base their loans, in part, on LTV, appraisals, and credit reports, and can spread their losses over many loans.

My examples are realized gains/losses.  

From the above, you should then be able to derive the following: Total Operating Expenses Expense per Unit Net Operating Income (Loss) Net Operating lncome/(Cost) per Unit Interest & Misc Expense (ie mortgage) Capital Expenses Net Income (Loss) Net lncome/(Cost) per Unit Pay attention to utilities, it can grow into an alligator instead of a cash cow!

Since there's really not that much left on the lease and you have plenty of warning, you won't have a leg to stand on regarding damages from loss of rent.  

For a 6-family building in Providence, RI I'm paying 3.4% of purchase price in property taxes annually.  18% of my annual gross rents (before accounting for vacancy and other losses) go toward property taxes. 

If he gave you good advice and if the deals are good (I know you think they are but the real test is what you get them under contract for) then it is his loss not yours.  

In my tax bracket, it represents over $800 loss if I can't write off the expense.