And there was no way I was going to withdraw and pay the tax penalty.

http://www.myrealestatespot.co...Now is a great time of the year to go to Airbnb and VRBO and use Luke's "enemy method" to see if you will make money:  https://www.biggerpockets.com/...Although Airbnb has changed this somewhat, It's traditional for STRs in OC to rent by the week (usually Sat to Sat) during the summer, mid-June to early September.

Almost all issues with tenants seem to be resolved easier if you employ a method that involves the carrot and the stick.

I called my realtor and told him to withdraw the other offers.

Bienes,One strategy would be to withdraw as much as you can from the business and then loan what is necessary to the business to create an interest deduction for the business providing it with less income subject to SE tax.The downside of this is that your business will have a harder time qualifying for loans.

Reviewing my own criteria, I guess I would have to say I use a combination of Aaron & Nathan's method.

There's got to be a more precise method, I'm sure?

@Edwin Brown I am in the process of making an offer using this method.

It is a great source of passive income.I recommend books and audio tapes found at www.jimmynapier.com on the subject of buying debt as a great way to become better acquainted with the business and how to get started.What may the best method for you to begin is to become an investor with a developer.

My question is, is it impossible to change the method of acquisition when already under contract?