There is also a service that will supposedly register an unpaid debt with all three credit bureaus.

There are really three options here: 1.

I bought a single family two years ago for 70k with the intention to live in flip.In the process of renovating I realized it could become a three unit and began reading about the tax benefits of rental real estate and depreciation. 

@Paul O'Connor as I was reading through this post these were the three options I was thinking all along as well.

Appraiser's are going to evaluate your property in three ways:1.

It’s one 4 unit home and three 2 unit homes and the asking price is around $1mil.

We all know that there are three strategies for Real Estate Investing: Flipping, Buy and Holds and Wholesaling.I do know that you at least need your “core 4”; Relator, Property Manager, Contractor and Lender for OOS investing but is there a specific strategy to follow for OOS investing that increases chances for success?   

@Crystal Shepherd people weren't offended but the lord of the rings and the hobbit franchise sure wanted their cut to use the name.

Meaning a person can be both dealer and investor.To determine if the taxpayer is a dealer three questions must be answered:(a) What is the taxpayer's trade or business?

You could exchange those three properties for one panhandle property and get to use the deferred tax for your benefit rather than paying it to the govt.The compressed time lines can cause some angst.