Like Jake Baker suggested, keep good records and have a dedicated bank account for your property, properly separating personal and business expenses.

If you are on cash accounting, yes you could do that.On the other hand, you are ignoring carry-forward losses. 

One consideration as you are working on locating private lenders, is that IRA, 401(k), and other retirement accounts can be used in many cases to make private money loans.

If you think there was fraud, you may have a case, but you will need to spend money to pursue it, and at the end of the day, it very likely won't yield any results, other than less money in your bank account, and worst case, you could be countersued, as some sponsors have threatened.

But ask your CPA/accountant because I don’t know. 

It's up to you how far to take this though.When we're faced with this, we try to hold the tenants accountable, by pushing hard to do self-showings.- Who better to show the house and speak positively about than a current tenant?

I took into account a likely cheaper labor rate but will say when we owned units in gulf shores that i was not encountering that low of a labor rate.  

I'm looking to create relationships with wholesalers, real estate brokers, contractors, real estate attorneys and accountants! 

Are monthly updates preferred as long as there is bulletproof accounting? 

Originally posted by Account Closed:Robert Lindsley That's the exact issue.