What happens if halfway through the option period, the tenant / option holder looses their employment and you need to evict them?

Heres my thing though, earlier this year I quit my job to run my retail store business full time so now my tax return will reflect self employed income where losses may be reported.

Before I had a family I was self employed for a few years because I didn't want to work for the man, I wanted to be the man.

@Jackie P.See the following IRS link which discusses self-employment income. https://www.irs.gov/Businesses/Small-Businesses-&-...

Typically turnkey markets work with the following critera.Low Property TaxesLow housing pricesEconomy to support working classLandlord friendlyGood enough profile to rent, not necessarily to buyMarkets are not appreciating abnormally Memphis does well over a our friends 199 miles to the East (Nashville) because we are growing a working class to employ solid lower to middle class jobs.  

I have a college degree in business and I have been self employed since 1988.  

However, I suspect the Sellers CPA will say, assuming option one above is not a viable option, that option two will result in a taxable gain to the extent of the 400,000 not funded and can the gain paid as the payments are received ( remember if seller is self-employed and historically makes estimated tax payments, that they need to include the estimated gain/pro-rata portion of depreciation recapture taxes, in those estimated tax payments  in order to avoid any unnecessary penalties and interest since the tax liability is reasonably able to be determined.  

I've had success searching for properties in lower-end areas with a stable employment base. 

And I would also be worried that the next time we have a big economic recession or depression, it could affect tourism in Orlando which in turn could affect employment and lead to evictions and vacancies. 

So if you wrote off a bunch of stuff, your ratios will be way to high and you will not qualify.So it pays to pay Uncle Sam if you are self employed and trying to get a mortgage.