(Background: i am evaluating whether to keep as rental or sell as i will have to pay capital gains if i keep it after August - when my capital gains exclusion expires)Cash Flow = Income - ExpensesExpenses = Mortgage, Taxes, Insurance, Maintenance, Fees (e.g.

Insulation needs a permit....roof replacement needs a permit...etc.Jurisdictions are different, but if you own the home in an LLC and you are technically not the homeowner (the business is) then you cannot pull a permit yourself unless you are a contractor....this can get a little sticky depending on where you are doing the work.  

I just finished screening, and doing a background check on potential renters. which I went thru trans-unions (smart-move) website. 

I'm not sure how much of a difference it makes that this is a promissory note, not a mortgage, and isn't technically tied to the house.I guess what I'm really trying to determine is if we can state that the loan includes the imputed interest and remove the tax liability away from the seller.

My husband also has a background in accounting. 

Hey Guys, A little background about what I've got- it's a 12 unit apartment right next to Texas Tech University & a large hospital, and 3/2 house right next to TTU&hospital as well.

I caught my break because of my prior experience in real estate as an agent, as a NASD Registered Representative  (predates FINRA) and insurance rep, anti-fraud background as a manager at UPS and a landscape contractor.  

Between the two of us we have an engineering and a medical background, so we love to analyze the numbers!

@Tzvi Ausubel it really depends how far you want to take it and how technical you are.  

In some cases you may have technically infinite rate of return if you have no money in the deal.