As a reminder... don’t forget to account for your Holding and Closing costs in your complete analysis.  

Account Closed The closing date is the general ruleThe property "in service" date is what others also use for tax purposes and deductions.

I'm verifying that my "accounting" is sound.

@Matthew Paul Hey, so the property is a foreclosure and has been winterized, but your saying I should still account for those costs when rehabbing?

Just a preface, I am a former Accounting & Finance recruiter in NYC and have experience with real estate companies. 

., @Marcia Maynard, and Account Closed,I agree with you all, but I have been hear from my other friends/landlords that their realtor make the tenant pay fix amount so that the home warranty can cover the rest.

Originally posted by Account Closed:@Harrison Sharp   Unless your family member is the kind of person that would have a prepayment penalties you should be fine. 

Have you ran the numbers on each deal to account for the expenses?

Account Closed: I sure wish I could afford a duplex but the market here in the Denver area is just way to expensive and the feeding frenzy going on doesn’t allow any good deals to stay on the market. 

If you'r using quickbooks you can classify it as an income account titled "Utility reimbursement" and post it as other income on your taxes so it's not just lumped in with "rent"- this will help you realize actual rental income.