It is hundreds, maybe thousands of dollars in damage.

The frame was damaged as well as the trim.

Yep, that is the gist of it.Remember, how the actual formal accounting takes place will influence these ideas in regards to what is a realized gain or not.

To clarify, I will be replacing the boards that need to be replaced due to damage.

If you don't, then you can be held liable and be made to pay for damages.

Those properties have mold and water damage.

When there is a future need for a tenant to pay a late fee, a lease violation fee, a legal notice fee, or pay for damages while they are still a tenant, then the pre-paid account is tapped first and the tenant invoiced for the remainder.

Depending if you purchased a note or created a note the influencing factors are different.Working with someone that understands your goals and risk tolerance is essential.

The goal is to calculate if it is possible for the tenant to be able to pay your rent on time and keep up with the utilities and to pay for damages if they occur.

The only reasons for a cash only deal that I'm aware of are if the price is too low for a mortgage (under $25,000 or so around here), or if the damage to the property is so excesive that the bank won't secure a mortgage on the property.