If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.

Gambling on future value is risky and it is the main reason we had the last real estate market crash.

I recognize some of this is good screening of tenants that have decent credit score to damage, some of it is the housing shortage in this market and that there is no need to ever rent to anyone that has ever been evicted, and some if it is luck.I suspect if you do not accept their offer and explain the consequences of an eviction that a very large percentage of the time an eviction is unnecessary and the tenants will voluntary vacate. 

This is following the general tax advice of "take your losses in the current year and defer income as long as possible".An expense is recognized in the year it is taken, whereas a capitalized lost is depreciated based on the given schedule for that item.

Having a AL-created LLC might require you to have an in-state agent for service of process, whereas filing as foreign, maybe you don't need an in-state agent.Also, a point of caution - Bigger Pockets is a great way to get good information but California does not recognize series LLCs. 

I may be willing to gamble and move forward with this deal in Feb. 

Your recognized capital gain upon sale is $75,000 (710k - 635k = 75k) and may pay long term cap gains tax on that of 0-20% for federal and up to 13.3% in California depending on your tax bracket; 33.3% basically on the high end.  

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.

We gambled at a lot at the same with deposits.I could get into all the different problems we faced, all the struggles we had to overcome.