That is another situation in and of itself.Your proposal to basically double the tenant's rent IMO is basically telling that tenant "F___ you, you're not wanted here any longer" - so don't be surprised to soon thereafter have a vacancy.

Sometimes if you just listen to them, they will propose something - usually better than you would have proposed yourself.

I've attached a pic of the cabinets & proposed flooring, and one of the current kitchen.opinions...??

If/when I amend my return, should I also look at adjusting the other expenses originally claimed (Specifics below): Advertising: $150   Auto and Travel: $108,    Cleaning and Maintenance: $2,363   Commissions: $2,600   Insurance: $ 306Mortgage Interest: $6,572Repairs: $360 Taxes: $2,051Depreciation: $11,131   Other (replaced washer/dryer): $774  -----------------------------Total Expenses: $26,415Bottom line from my ScheduleRents Received : $15,430Total Expenses : $26,415Deduction for loss : (-$10,985)-------------------------If I amend and take out all things except for the taxes, insurance, commission and the correct depreciation, I would show a profit: Taxes: $6,572Insurance: $306Depreciation: $4,444Commission: $2,600----------------------------Total Expenses: $13,922Bottom line after proposed amendmentTotal Rent: $15430Total Expenses: $13,922Profit: $1,508I know this is a long post, so I appreciate and and all help.

If/when I amend my return (pretty certain I should), should I also look at adjusting the other expenses originally claimed (Specifics below): Advertising: $150 Auto and Travel: $108, Cleaning and Maintenance: $2,363 Commissions: $2,600 Insurance: $ 306Mortgage Interest: $6,572Repairs: $360 Taxes: $2,051Depreciation: $11,131 Other (replaced washer/dryer): $774 -----------------------------Total Expenses: $26,415Bottom line from my ScheduleRents Received : $15,430Total Expenses : $26,415Deduction for loss : (-$10,985)-------------------------If I amend and take out all things except for the taxes, insurance, commission and the correct depreciation, I would show a profit: Taxes: $6,572Insurance: $306Depreciation: $4,444Commission: $2,600----------------------------Total Expenses: $13,922Bottom line after proposed amendmentTotal Rent: $15430Total Expenses: $13,922Profit: $1,508I know this is a long post, so I appreciate and and all help.

My HOA in Arizona is proposing a drastic change to the CC&R's and has put this out to vote of the community. 

I would meet with your tax advisor to determine what the income tax consequences would be for each of the solutions proposed above in order to determine which is the best strategy.

I don't even have to know how much is in there to make that guess.Then your proposed solution is to to learn about alternate forms of investment (e.g.

Nothing in his proposal is remotely illegal or unethical. 

Or, like you say, what you proposed works too.