You do but guess what, you don't' get that extra $100,000 back.

I think since the tax year still benefits from the 80% bonus depreciation, taking a few extra thousand in bonus isn't worth the risk of additional scrutiny by a tax court.

People think we just add in an extra few thousand for negotiating purposes?

We always teach Lease Options first because they are the easiest and safest.

Pedro charged $20/hour but we only needed him for a few hundred hours of work each year earning him approx $5,000-$7,000 extra per year

Looking at the rough numbers and we are comparing apples to apples ie: area and appreciation, I think the first is a better option because the cash on cash return from the investment cost to rent ratio.

As previously mentioned, Cash for Keys may be an option.

I'm not telling you NOT to improve/upgrade the property, but I'd exhaust all free/cheap options to market it as-is first.

I would probably keep the other house regardless of what I do because of the low interest rate.I am now wondering if I should hire a Qualified Intermediary (my realtor calls this an "Accomodater") so I have the option to buy a one level rental, stay where I am at, and if in the future I am unable to live in the two level home I am currently living in (our second home that is my primary residence), convert the rental to a primary residence.

Are there any other options aside from the rehab loan other than cash?