So in the event the tenant had a claim that they gave a deposit to the old owner you've got your ducks in a row.As for what to do with the tenants going forward the language they speak is a non issue.

I know in regular real estate transaction we include Transfer Disclosure Statements (TDS) and Natural Hazard Disclosures and Lead paint disclosures. 

Hi all, Last year was the first time I started flipping houses.. on one of my houses I took a pretty hefty loss after selling it and was curious what avenue I take (what form/schedule...) that I utilize to file for claim that on my taxes is there is a tax break for such a thing.Thanks

My local lawyer that I use for 'regular' LLCs didn't want to touch it  when it came to the SDRIA aspect and advised to stick with the specialistDan Dietz

Then see I'd you can just do cash for keys to get them to leave and sign a Quit Claim deed to 100% cover you.Not sure how this would fair in court since a Magistrate could say they have equity and kick the case up to a higher court for a foreclosure.

Rental income is shown on sch.E which is not subject to social security taxes (like FICA) but all the other taxes.When you're renting property vs owning, you can't depreciate it but your rent payments are totally tax deductible (vs only interest on mortgage is).Insurance: you'll have to get Tenant or renter insurance which protects the property and your liability if someone slips and falls, set building on fire etc. this is not your professional insurance - just regular insurance you have for your home.I don't see how kind of entity will affect the taxes: if it's just you the owner, LLC will be disregarded entity and shown on your own taxes, only on different schedules.

The BP podcast regularly has guests who successfully wholesale real estate property and there are countless examples of success vs. one person who says it doesn't.Continue reading and educating yourself through the books that people are reading and recommend.

There is a member named Dan Cone that is from somewhere over in that area that comes to our meetings pretty regularly. 

The owner is a lawyer who believes he has gamed the system by claiming much the same thing.

In mine we regularly hit 85% and above.