Imo, contractions shouldn't be used in professional situations, either.

Usually that is more of a wholesale situation.

I also don't want to get myself in the situation where the mortgages are more than the properties in the end, etc.

The first we will discuss is in the situation of the above paragraph – they out-bid the other bidders.

I own a property bought at auction where that exact situation had happened.

Here's a tricky situation...We already own a house and as we bought this townhouse at the market peak it cost us $410,000 - 3 br 1.5 ba townhome.

I think that is very situational...

We have a renter now that originally was a rent to own. Due to his inablility to sell his house in CA, he is going through a forclosure which means of course it will be years until he can get another house loan. He ...

Assuming your marginal tax rate was a combined (fed & state) 33%, you would get back $1919 on your taxes, assuming you had income and paid taxes.Speak with your CPA on this, as there are several different strategies that can be used, and there can be depreciation recapture, depending on each situation.

In this proposed situation, you would have neither positive cash flow nor appreciation (since the "buyer" would get that).