My understanding is comparison sales approach or income approach.Comp Sales approach is getting comps from area and then carving carving 40% +/- off that price. 

I cannot answer if taxes would be more or less if he sells outright, what I can say is he will pay california taxes on the interest income of the loan.

Nor is needing income at all! 

Buy and hold rental income is generally considered a passive investment income unless you are a real estate professional.

Have a very stable job and income but DIT slightly higher to get easy approval.

However, I spend a lot of time managing it as I am renting out by the room and the tenant profile is lower income.

Hi everyone,I’d love to get people’s opinions on my beach condo short term rental.1 bedroom, 1.5 bath. 800 square feet.All the numbers I used are taken directly from the current owners records.I made the str income $4,000.00 a month because the previous owners were grossing about $51K a year.This is not a home run.

Like most of you, my goal is to invest in single or multi-family properties and start creating some passive income and equity. 

Is this person working because this may be the route to go if they have no income and no ability to leave but assuming they are working offer the clean slate leave first and see what happens.  

This means I may owe US income tax on those proceeds, even though I am paying the required Kenyan taxes on the same rental income.