I like to keep things as simple as possible, but I was excited to dig into this one because knowledge is power, and the better we understand these things, the more we can use them to our advantage in real estate.So here’s what’s happening—your CPA is basically saying you’re already showing a loss on your taxes because of all the expenses that came with closing, insurance, HOA fees, etc.

there is no bank, no mortgage, and therefore no due on sale clause.if there is a mortgage in place, and you take the payments over, this is typically referred to as subject-to or sub2 and is much higher risk for everyone involved.

I'm just a simple yokel from the backwoods of Alabama reading about how you guys are doing things and trying to learn by doing. :) 

@Jason MatthewsHi Jason, Welcome to the community. 

Whooping $815 more cash-flow What made you interested in investing in this type of deal?

Since RAD has someone on the forum they can respond to this, my question would be you make some pretty damaging statements there, do you have any dates etc. you can refer to like the cookout at XYZ on this date or the party at ABC on this date or ABC drives a blank model company car...

Really sounds like more of a publicity stunt than anything else. 

if they have several years of your returns this is something they might be able to help with. 

One other thing to keep in mind is that you have more financing options on 2-4 units than you do on 5+ units.

It is so much easier to get a HELOC or second mortgage on a primary residence, and much more difficult and expensive to get one on a rental house.