Here are some details:Mortgage owed upon inheritance - $50,000Buy-out my brother - $45,000Renovations - $20,000Total Cost - $115,000 (I took out a home equity loan as the property was worth $215,000)Total Rents - $1,575Total Expenses - $1,400 (Mortgage, Insurance, Taxes, Property Manager, Cap Ex, Maintenance, Vacancy)Net Income/Month - $175Good deal for me!

If your total profit plus depreciation taken is greater than $32K then you will still have a savings from the 1031. 

We lived in MD for 20 + years and I was a total Real Estate Junkie while there.

We set aside about 60% of our total savings into cash reserves for investing.  

-CapX: $180List Price: $419kDesired Purchase Price: $399kDownpayment: $79.8kAnticipated Rehab: $10kClosing Costs: $4.2k30 yr loan @ 5%Total Cash out of pocket: $94kAnnual CF (before taxes): $6175.56ROI: 6.57%

Hello BP, total n00b here.

Not totally accurate, but getting better in my opinion.

I'm a full time note investor and it's been a total blessing in my life. 

If you buy a 2nd position you are buying subject to the senior lien; If that lien is in default then the total payoff ( if in default or foreclosure, interest, late fee's, foreclosure fee's, etc. ) is still owed and secured on the home. 

See how nice and helpful people can be when the situation is correctly stated :) @John Andruszka   SO Ya your next step is post pay or quit then file for non-payment, eviction, she's not gonna pay you a dime. is my bet and I bet I'd win that bet..You have no guarantee she'll pay rent, you've given her 2+ extra weeks to move..