That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.

He is a CPA, Tax Attorney, IRA expert and regularly takes on the IRS in court.

Your $35 Goodwill table and smaller items that you listed would not be eligible for depreciation, and instead are just regular deductible expenses.  

Weirdly, tenant occupants get a whole paragraph explaining that liability still accrues to the property owner who is the mandatory HOA member, which immediately disproves the claim there's an uncovered liability issue with tenants fully enjoying to pool.  

Both partners have real estate experience and both work regular day jobs Partner #1 is seeking financial freedom and to use real estate for its long term wealth growth and to reduce his income tax burden by utilizing depreciation.

It is not just about what the property is worth but how much cash flow with the least investment possible and keeping the property with comparables in your area you can make, plus taking in consideration Capital Investments, vacancy, regular maintenance, etc etc

If the down payment is the problem and you don't want to owner occupy, just take some extra time to save up and become a regular 25% down investor the right way. 

My wife and I are coming up to the end of a two year lease on a property in Northern Virginia -- as we've been here, we've noticed that our kids have had persistent respiratory issues -- particularly our 10 month old son, who we took to the emergency room at 4 months old, with respiratory issues (we didn't think to check for mold at the time).As we've been in the house, the owner (who regularly cut out the property management company he had been working with), has mentioned that when he lived in the house, he had noticed 'pin hole leaks' in some of the pipes.. and when we pointed out a 1 inch diameter 'soft-spot' in the kitchen ceiling, he chalked it up to that. 

That lawsuit is a claim for fraud, and that’s what fraud typically is...a misunderstanding and someone being “injured” and wanting to hold the other responsible for it.

In my opinion, the time you make that decision is when the income from real estate replaces or over powers your regular income from a current job.