The correct answer is: you can take any property "subject to" all liens and encumbrances, and those can be liens of any kind (tax, IRS, mechanics, municipal, mortgage, state revenue dept, etc).

First off I hope this is the correct sub forum (BP is over loaded with sub forums) I am wondering how many BP members live solely off of their real estate.

But you're correct, Sherry, that you can deduct the expenses you incur in running your business.

I have not yet put an offer in on this property, but I am using it to create a hypothetical scenario to see if my numbers are correct.

Steve's post correcting the numbers is dead on.Why in the world would you want to settle for a 7% return?

Say no and move on to someone you are more comfortable with.I am not sure if this is correct, I believe what Nathan is saying applies to owner-occupied properties with no more than four units.http://www.housingrights.org/askhri/faqs.htm#holl

would be correct.

Im pretty sure I know the answer, but if I did get no for an answer, we'd still be on for the original accepted offer, correct?

If it's a mistake on the part of the Escrow officer, just get a corrected/amended HUD one rushed through and then get it to the underwriter.

It does take a little time and money and potentially a little drywall repair if your contractor can't take off the old trim correctly.