Hi Babu,A simple rental property balance sheet will have the following accounts:Assets: Cash, tax and insurance escrow, fixed assets and depreciationLiabilities: Credit cards, security deposits, and loansEquity: Opening balance equity, owner's contributions/distributions, retained earnings and net incomeThere could be a number of reasons that your balance sheet does not balance.

They can provide a more detailed analysis and advice based on current market conditions and future projections. 

But now he is staying so we decided to play the cat card, and told him that per his lease pets not allowed and if he would like to keep it we will need to amend his lease to include additional $100 pet rent plus collect additional security deposit.

Hi Hannah, CPAs can provide ongoing support and guidance throughout the year, not just during tax season.

Were the railings solid and secure?

If they damage the place, that is what the security deposit and if necessary, the court system are for.

While this is being promoted as a safe way to get into real estate by some experts or gurus, there is no way to secure your loan with real estate when the money is used as a deposit before the purchase is closed.

What information is required to support that you stayed in the property the required amount of nights and who do you provide this information to?

I have now secured funding as well as contractors that are ready to scale with me.

To sum up the risks to the seller; the seller remains liable on a note which is secured by real estate they no longer own; the property sale has violated the due on sale clause of the mortgage or deed of trust and the note can be accelerated by the lender; the seller’s credit capacity is impaired because he has debt with no offsetting property equity.