Hi Michael,Great question, your tax advisor is correct with their final determination of reporting the activity on Schedule E.

Should you report it on Sch C or E?

Domicile: WA State (income tax free)Property location (Texas): (income tax free)LT gains + Depreciation recapture ~ $300k on a $500k income property ~effective / average tax rate = 12% for past umpteen yrs (relatively low income, avoiding IRMAA and doing Roth rolls (no 'realized' income, just transferring from tIRA to Roth = vast majority of annual MAGI income)In the end (coming soon, ~17 yrs) ALL remaining estate will go to charities / Charitable Foundation / DAF.

Feel free to reach out, my info is in the profile here.

Feel free to message me if you have any questions about it. 

But you've already found one that will allow 2% down, so maybe they will also allow borrow to borrow for the rest.I'm not a lender, but chances are 2nd needs to be disclosed on their credit report and to the 1st. 

I would make $30,000 tax free in 2 years with say $3,000 down.  

BP's team has let me know that I may not attach full third party market reports due to my business phone number which appears on the market reports, so I have parsed some of the market data from them to include in this post along with data from the MLSwhich was pulled on 4/18/2024.

If you don't want to share in a public forum, please feel free to send me a private note / private message.

Just because you don't call it "interest" doesn't mean it's an interest-free purchase.If they are incapable of getting financing through a bank, that indicates they are high-risk.