Unfortunately, it's hard to compare returns with other     investors because everyone uses slightly different numbers in their analyses.  

Since lenders now ask for 2 years of prior tax returns, not filing could jeopardize your future real estate investment career, especially if your increase income this year.I also know that for the Schedule C the minimum to file is something like $400 net but I'm sorry that I can't find the answer for Schedule E.

You might want to compare this to leaving the money in the bank, or a CD, where he will be less than 1% interest.

Do your offers go up compared against the 70% rule? 

Many listed properties have an asking price not supported by the property's condition.To make your determination, you need to do a full analysis to see if it matches your criteria, including your expected ROI and cash flow potential as well as the comparable recent sales.

Prior owner liens.

The crazy thing is that prior to that loan, i financed a house that he bought as new primary about one year prior to that, where he did actually live. 

These people have no prior qualifications, make more $$ than I do, and have company cars and whatever.

@Logan Allec provided an outstanding explanation, and @Basit Siddiqi added couple good points.I just want to frame the bigger picture: the new law does NOT hurt ("hose", using your word) people who receive 1099-G for prior overpayment. 

I meant to say that Las Vegas is not as landlord friendly compare to our states.