Federal Trade Commission 'Operation Clean Sweep' crackdown on credit repair companies.Item 3.

If income is generated primarily through your efforts, such as rehabbing, flipping, wholesaling, etc, then to my mind, you're operating a property-based business rather than investing.

Multi-unit Property AvailableNorth Cental Texas, near major universityFinancial Summary Proforma Year: 2009 Scheduled Gross Income: $185,760 Effective Gross Income: $185,760 Operating Expenses: $108,659.84Net Operating Income: $77100.18Tax Rate: 2.39%Unit Mix Information 1 Bedroom/1 Bath No.

What types of units do you operate?

If you save them all of the leg work of researching the information, organizing it, etc they can move forward faster.

Good Point, I am looking into the operating expenses now to see what the numbers are.

What I'm wondering, has anybody called up the organization that placed tax liens on properties and negotiated with them if they would take less than the full amount?

Unfortunately, the deals are even worse than that, because there is a cost associated with the downpayment.Here's how I would evaluate these deals:Deal #1:Gross rents: $2,400Operating Expenses: $1,200 (half of gross rents:NOI: $1,200 (subtract operating expenses from gross rents)Mortgage ($249K, 30 yr, 6.75% NOO): $1,615Cash flow: $415 LOSS per month (OUCH!)

This definition of UBIT taken from IRS publication 598: "... if an exempt organization regularlycarries on a trade or business that is not sub-stantially related to its exempt purpose, exceptthat it provides funds to carry out that purpose,the organization is subject to tax on its incomefrom that unrelated trade or business."

That rule says that operating expenses for rentals run 45% to 50% of the gross rents.