Keep in mind a lot of the people your networking with often become deal sources in the future.

At some point in the future, you should be able to refinance with a bank (cheapest money available) and pay off the seller's financing.

@Kris Benson Yes, buy and hold for now and expansion if needed in future.

If we use the above example and pretend I own Dave's place, and then sold it, I'd owe $8,183 for this year to be paid in the future as recapture fees...  

@Eric SandersWelcome to BP, and congratulations on making the decision to invest in your future via real estate.I have written a few blog posts that may help you get started here on BP, and with your investing.

How would I recapture the depreciation upon selling A in the future?

We would split all cash flow and liquidation proceeds (if we decide to sell in the future).  

Unless the amount is significant, you may just want to move on a little wiser and find better tenants for the future.

If you start now you will be able to get him out faster in the event that he refuses to leave at the end of his lease.In the future I would also set up your leases so that all tenants are equally responsible for the rent.

Then the bank sees the house as having an income to me and actually helping my DTI.I've also read a little on here that while using the FHA loan the lender may add the future income from the multifamily into my DTI but only if I have a record of rental income in the past?