During our conversation, I noticed his body language.

@Frank HinckI did recently listen to 392 but i’m betting on the continued need for student rentals paired with the fact that with covid, off campus housing is going to become an option for a larger percent of the student body that before.

Probably well over a hundred bodies could be found at the foreclosure cemetery over last 3-4 years of the rehab boom in Austin.

Even though the seller seems responsive, no luck so far in terms of producing documents acceptable to the title company.The contract is pretty general, as it states:"DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract.

The good news is that we live in LA and any property with more income producing units will sell, its just a matter what financing the buyer can get since it is limited now.Im building legalizing an ADU on my triplex right now so Ill be in this boat but I wont need to refi anytime soon so hoping these guidelines change a few years down the road. 

It has to be disclosed on the body of the contract, and it has to be indicated through the Local MLS, so this information is available to a Buyer prior to calling a listing agent. 

There was a 7 day contingency on him having an offer on this existing home & if he couldn’t produce a purchase contract on him home that he would either remove the contingency or the property would go back on the market.

But the current tax law allows you to use some or all of that loss to reduce taxable income from the rental itself and any extra can be applied to other sources in many situations, including other rentals that produce a net profit even after depreciation.Welcome to the 9th Wonder of the World: depreciation!

Buy multi-unit properties that I can rent to produce cash flow and appreciation (But focus specially on the cash flow side)2.

Even with these expenses, the property still produces cash flow at 3.5% cap rate.I’ll be living in one of the units so that reduces the chances of vacancy by a quarter.