Generally, the rule for every state will be this: Your contract will determine what the rules are unless it is contrary to state law in which case state law will always hold. 

I am disappointed, but I will keep trying - I am determined to find a great first deal!

Reason this seems important is that it would help determine strategy of a larger vs. smaller downpayment to increase cash flow or increase leverage. 2nd Question) I've read about "special allocation" of taxes that allows for the tax gains/losses to be distributed in a manner that is not equal to the ownership stake.

I've found that www.listsource.com allows you to search by zip code, equity %, corporate owned, etc and from there you can determine who is actively buying properties in your market.

If they are not reporting ALL of the income to the IRS, they have little to justify an asking price that isn't based on auditable books.  

Besides that, comps of other properties sold that are similar and CAP rate will help determine if the sales price is in line with the market. 

Please see quick math here for a $10K down payment ( 5% IR, 1% PMI, 900/annual taxes, $0 HOA)Mortgage/Tax/PMI/Insurance: $690/monthCapex (20% of payment): $150Vacancy (10% of payment): $75Management: $130With $1300 in rental income this generates at least $255 a month - better if I increase my downpayment.Here is zillow link: http://www.zillow.com/homedetails/14818-Astrolyn-St-Winter-Garden-FL-34787/82077144_zpid/I'm interested in these low income properties so i'm curious what you think of this deal.

This is determined by local traditions.If I remember correctly I use 1.4% and it gets me within a couple of hundred dollars.

While the foundation of any true money-maker is getting a motivated seller to sell you property at a discount, knowing your exit strategy can help determine how much of a discount you need.

Hey there Bigger Pockets community! My name is Zach Mckinnis and I am from Hutchinson, Kansas. I have been in my real estate investing career for two and a half years at this point and have accumulated 5 properties co...