Bob Lowry The 2% "rule" is based around a 25-50K house and like Jon said assumes a 6% interest rate, so obviously as you start messing with the basic concept it becomes skewed and doesn't effectively work anymore.

The reasons for breaking lease are related to maintenance issues which they didn't feel were addressed in a timely manner.

Gave me the address and said they are looking just to "break even".

I guess I just felt like water in an old basement when it rains heavily obviously doesn't negatively effect the structure of the home since it has likely been wet since 1938 ...and if it is not a living space, why does it matter to a renter?

Hi Mathew, thanks for asking about in effect the tax treatment of non refundable option payments, rent credit etc!!

Can someone be so kind as to email it to me to the address in my signature line?

As it stands now if you were to proceed and she stopped paying you would end up with a tax lien on your property you now have to pay effectively setting you up to pay 55K for the property.

This is very revealing and effective.

The article I co-wrote with him can be found by following this link:http://www.biggerpockets.com/blogs/2997/blog_posts/22522-8-habits-of-highly-effective-inner-city-landlords

It is rented to section 8 Tenant so there were section 8 inspection items to be addressed.