The tenant paid his deposit in cashier's checks and left his account ledger from the previous leasing company (No clue why) showing he had fallen behind on rent payments for 4 months.

Are there any other considerations to ensure appropriate liability protection in this arrangement? 

What made you interested in investing in this type of deal?

Assembly Bill 1771, also known as the California Housing Speculation Act, aims to change real estate tax policy to discourage investors from quickly reselling properties like single-family homes.Under the proposed bill, an additional 25% tax would be imposed on the gain from the sale of a qualified asset (including homes) within three years of the previous sale.The tax reduction is dependent on the number of years passed since the initial purchase of the qualified asset, ranging from a 20% reduction for sales occurring between 3.01 to 4 years to a 100% reduction for sales occurring more than seven years after the initial purchase.The revenues generated by this tax increase would be deposited into the Speculation Recapture Community Reinvestment Fund, which aims to support affordable housing, local governments, schools, and infrastructure projects.The bill is introduced by Assembly Member Ward, and the proposed tax changes would take effect from January 1, 2023.Assembly Member Ward argues that short-term investors in the market, including fix and flip investors, contribute to rising housing prices, limiting opportunities for Californians to purchase homes.While the bill may discourage short-term speculative transactions, it is worth noting that California's tax laws still provide certain advantages for investors, including unlimited tax write-offs and depreciation benefits.The bill is subject to legislative approval, and Assembly Member Ward will speak publicly about the bill at the San Diego County Administration Center on a specified date.Please note that this is a simplified summary of the bill and its potential impact on fix and flip investors.

@Brent Logsdon sorry I missed this.

This is truly a fantastic place to connect, learn, and continue growing your real estate knowledge and network.Keep up the momentum, and feel free to reach out if you ever want to share more about your journey or need advice.

This could range based on how much risk and work you're taking on versus their financial input.The key is to be clear and transparent about expectations, like how profits will be split and who is responsible for what.

This is how the rental income is reported on their personal tax return."

Good luck on your journey and feel free to reach out if you ever need any guidance or advice.

I'm a Wholesaler based out of Shreveport-Bossier City, LA area.