Eric Newman Samuel Pawlitzki is correct... if you sell that land for say $60,000 to a buyer the title agency you use will settle your the liens on the property before the title can transfer as clean title.

When we bring in a subcontractor such as a plumber then we use the same method you use.

@Ryan Murdock I'm fairly confident utilities aren't required but am getting in touch with the correct people to clarify all section 8 landlord requirements.

"Anything I should consider itemizing over taking the standard deductions") suggest you're not able to prepare your own return (correctly and to your benefit). 

Correct me if I'm wrong but essentially you are saying to treat it more like a standard contract that closes not "if" but rather "when" the rezoning goes through.

Before we got prequalified I had a long conversation with our lender about our plan, which is basically to follow the BRRRR method.

Basing purchasing decisions off a current cap rate makes little or no sense to me (would appreciate being corrected).

- background Condo is coming out of an Estate Sale and needs work - recent market activity, data from last month, similar units -  (1) Estate Sale - As-Is - listed for $129,000 - sold for $134,000 - (2) Well maintained /Updated - listed for $149,900 sold for $154,900 - admittedly might not be looking at this correctly in that (2) might not be relevant - thank you for helping me

If I understand the story correctly, unless your jurisdiction says differently, these are your tenants and if they don't turn the property over to you, you will need to seek an attorney's assistance in evicting them both. 

@Jimmy Ready Correct - FHA is always mortgage insurance, with conventional loans the mortgage insurance goes away once you hit 80% LTV.