[/quote:Here is my take on this issue;Any property held to produce income is debt-financed property if at any time during the tax year there was acquisition indebtedness outstanding for the property.

If the contract fails to close, you may be held responsible under the default provisions.

Firts time homebuyers need to have their hand held, they ask mom and dad, you asks a friend to come look and inspect, then you end up selling to a committee (just a quick example).

If you're listing a property held by an investor and they need to dump it quick, your idea might be welcomed.

They'll refinance 65-70% of the all-in price (purchase + rehab) if the house is being held long-term.Loan terms are either:- 36 months interest only at Prime + 1.25% (minimum 6.75%); or- 36 months fixed at 7.5%; or- 60 months fixed at 8.5%.Not a great option for very long-term holds, but great for flips, lease-options or short-term rentals.

A guy named Chili, a CG who built the house I leased, got me thinking, then a local judge who was my neighbor added to the idea as he held properties, then I went to a RE Broker and showed me the basics to start.

My personal preference is to own property because it will eventually be held free and clear and continue to produce money with a third party manager managing it.

Problem being that the Florida Market is entirely different than almost every other market in the country.And there are hundreds if not thousands of other examples I could give.At a time when most of the Gurus are telling us that Buying, rehabbing and flipping SF is DEAD, I personnally have bought, rehabbed and flipped or rented and held 22 single families using a specific technique that I developed and have been using for more than 20 years in every type of market.

:)Depending on how the property is held (business entity or personally) will impact this analysis a bit.

Since BPOs can be done by an in office agent, who has a vested company interest (or as the listing agent as have been done in the past) and the lack of appraisal expertise held by most agents, a BPO is eye wash IMO.