If you are investing in a market with little cash flow but your analysis requires a minimum of the 1% rule, you may never hit that.

Do you have the financial backing to take on an economic hit during that time?

So we gave a 60 day notice to all tenants for the new monthly fee.Our plan is to have Onsite Manager read electric meters,  send meter data to Off Site manager, we prepare statements on who owes what,  send statements to OM to distribute to tenants, and then we hit the tenants bank accounts, or Credit/Debit Cards remotely.  

We need to hit 6 months just to break-even and at 9 months we would start to see a correction.

As long as you have a day job, and do R/E on the side, the if your income exceeds $100K, your allowable loss slowly reduces and by the time you hit $150K, the current year loss is zero.

The reason the seller is asking for more is because he knows he is going to get hit with capital gains when he sells it so he is trying to compensate by asking for a higher purchase price.  

He then hit me with "Don't worry about it".

They were model tenants and had great references until dad moved out and then the sh** hit the fan.

If one of you gets the payout and distributes it to the other 2, you're the one taking the tax hit for them unless they fill out a w9 and then you 1099 them their money. 

Part of the problem is that you bought it just as COVID hit and the rules were altered "temporarily" until I think April 2022 at least.