Are you in a higher income tax position?

Why are we paying this: He didn't pay taxes or insurance on the house for years, voiding the agreement.

@Marco Silva data: population growth, job growth, housing supply, landlord friendly laws, purchase price, anticipated rehab cost, property tax rates, insurance cost, is insurance cost rising quickly, expected rent, rate of rent growth, can someone with the median income afford the rent, diversification of the economy, quality of local schools, crime rates, is the property next door a dump, how many other people are bidding on the property, is there a Starbucks nearby, is there a grocery store nearby, are there multiple property managers nearby in case one fails.There's so many ways to find deals, to name a few: MLS, wholesalers, foreclosure auction, tax sale auction, doing your own marketing through a bunch of different channels like direct mail.

Based on a rough analysis for a project timeline, I believe the total project can be completed in 5-7 months with the team I have available if we get involved in completing the work on the project.Deal Analysis as a whole - Actual Costs may be slightly different but estimates should be fairly closePost Construction Estimated Market Value - Lot 1: $379,000 Lot 2: $307,000 Total Estimated Market Value $686,000+- $102,000 - Cost to payoff HML & Previous Builder- $154,800 - Estimated Cost to complete House #1- $170,370 - Estimated Cost to complete House #2: Includes New Well/Septic $7500, Impact Fees $2100, Permits $1000= $427,170 - Estimated Cost to Payoff HML, Complete Construction on House #1, and Construct House #2+ $686,000 - Total Future Market Value- $20,580 - 3% Buyer Agent commissions as the current owner(Listing Agent) will be listing these properties without compensation- $2,538 - Real Estate Transfer Taxes- $1,500 - Settlement Costs Paid at Closing______________________________________________ $234,212- $27,900 - Payment to Seller for Down Payment made by seller to HML @ Origination (For her to break even)= $206,312 - Potential Return before any Interest/Fees/Taxes/EtcROI: 45.3%RoR: 68.9% PM: 30.07% Acquisition/Exit: 8 MonthsI've spoken to a few HM Lenders and ran rough numbers by them.

These markets are unlikely to see homeowner demand being diverted to rentals for economic reasons, given the tax advantage of ownership and the potential for equity gains.

I'm getting the application process started with our city to obtain a license to do short-term rentals.With this being - said we're thinking that it might be time to get an accountant to support us during tax season as we enter this new venture. 

I've calculated the tenant-occupied vs. owner-occupied ratio and understand that for expenses that are for shared areas, that ratio would be applied at tax time to deduct. 

Real estate specific tax law is very complicated and dynamic.

. #3: Check taxes and insurance for the state.

We live in Los Angeles, both are self employed 1099 independent contractors, combined annual income roughly 250k pre-tax.