Rents are collected via social security and donations from non profits as these are elderly people, therefore the rent is paid timely- Thoughts?

The tax impact is generally significantly smaller than the benefits of leverage and the resulting higher cash-on-cash return the IRA receives, but does introduce the filing complexity.The repayment terms would be those offered by the lender, not anything specific to the IRS rules. 

I am seeking an understanding of something in particular that I haven't been able to find in the forums.It is likely that we will be seeking an eviction judgment against our current tenant and I am wondering how the security deposit factors into that judgment.We will ask for rent & fees owed and court costs in the judgment.

If the old Landlord keeps it, I would consider that theft and I think a court of law would agree.If it's not too late, have the tenant put a "stop payment" on the check before it's cashed.If it's too late, notify the old Landlord - in writing - that the money rightfully belongs to you for payment of rent and demand return within XX days or you will file a claim in court.

I talked to my CPA about electing this year to be the final year to file these Partnership returns and K-1s and just move forward by splitting everything on our Schedule E's between the two co-owners. 

Paying cash may help investors sleep better at night (ignorance being bliss) but losing all that money every month is certainly not wise investing.A wise investor maximises leverage to generate highest returns on cash and holds a reserve in other vehicles to be used for the same security as dead equity while still earning maximum returns.

But I know I won't be able to do my job forever and I like the security and freedom that Real Estate Investing has to offer.I'm currently managing one property part-time but I'm looking to own and manage future properties; most likely out of state.

We have also found several smaller local banks and credit unions in border areas (New England, the Rust Belt) that will make secured loans to Canadians.

The last item was "no permit or drawings on file to duplex first floor to basement".

For example, I can get 30 year fixed for 30 year financing for 10% down and decent interest rate (less than 6%) which would give much more security and better cash flow.