Boot is taxed as profit first, so if you have 50k in profit, but take out 30k in mortgage boot, you will be taxed as if you had 30k in profit. 

It must work for him as he's able to rent them for me at market rate and then turn around and make his profit. 

He know owns 12 single familys and a profitable business.

Luckily the market has not shifted to cause a hit on the profit projections.

I want to lease option it to someone else who will end up buying the property. property is not livable as it sits. and I plan on renting it out for a bit my credit sucks and my family doesn't  have that type of money and here are my numbersarv~50k+avg rent $850rehab is 20k insurance- 1500/yeartaxes 560/yeargross profit (not including taxes)-$348/month (when taxes are due its $68/month in profit for that month which I'm fine with)sellers numbersloan balance is 22kpaying him $377/month includes 5% interest

A T12 or profit and loss over the past 12 months and latest rent roll.

@Shawn Ackerman i wanted to hold it long term, or sell it for profit or both like a sandwich lease ?

I want to do this right and be profitable.

@Cole Jacobs House hacking on Oahu is more difficult than the mainland, but can be more profitable in the long run, due to appreciation (both forced and market).

Doesn’t effect my profits.