Thanks for your advice Thought I should add that it could be possible to not borrow the 100k, rather sell a portion of my overseas property (Sydney Aus) to family for the value of 100k.

.$35,000 loan from a family member for the down payment and a small portion of rehab ($30K DP, $5K rehab).Conventional mortgage for the remainder.

Often section 8 won't cover the entire rent so you need to make sure tenant can cover their portion.

If you can get your portion of the mortgage covered as much as possible or completely, then I would consider that to be a home run. 

In the rare event that the tenant ever skipped out on paying their 30%-40% portion they could be kicked out of the program.

My question was, if Person Y pays the accrued $37K (the payments needed to bring the mortgage current) is any portion of that tax deductible?

There are a couple of lakes nearby and a lot of people visit the area for that.Some of the options I have considered are:-Building boat storage on the the unused lot space (moderate initial investment, low return, fairly passive)-Mini storage units (high initial investment, moderate return, needs active mgmt)-Placing 1-3 mobile homes on the unused portion of the lot (high initial investment, moderate return, fairly passive)Any ideas would be appreciated!

Are there securities I should look into to protect my portion or shall I go it alone.

The idea is that with a performing apartment complex you receive a quarterly check of your portion of the cash flow and if the syndicators did their job you get back your investment plus some level of profit.

However there is a not insignificant portion which are outright criminal/predatory.