If you can document that you have lived in it for 2 out of the 5 years prior to sale then you will get the first $250K/$500K if married in gain tax free and will only have to recapture depreciation.  

It makes a great filler prior to staining.A word of caution on dark stain...Our first house had urine stains(very dark, cannot remove without replacing)  we decided to go back with a chocolate stain.  

The other poster was right in that the prior owners probably had the homeowners and seniors exemptions, but there may be mitigation methods.

This is tough but I have been examining similar scenarios and believe a compensation model that is weighted to the roi of the property makes the most sense  (i.e. a 3% payment for returning 20+%, 2% for 15-20%, etc....  

This area rents between $750 and $850, we're on the higher end as the kitchen and bath were renovated prior to acquiring.Would love some recommendations on a cost effective solution.  

The Deed of Trust or Notice of Interest needs to be filed with the county where the property is located and you MUST receive a confirmation that it was filed prior to giving any funds.

I'm guessing the prior owner rented the house out and never had the weatherization inspection done before they foreclosed on the house.  

I had looked at her lease and it stated she was supposed to have paid it but apparently never had prior to moving in.Months down the line the topic comes up in conversation between myself and the tenant.

If they were every tenant that decided they were moving would stop paying rent prior to the end of their lease expecting to walk away scot free or better with cash in their pockets. 

How did you balance your time and what financial aspects did you review prior to taking the plunge?