Either he does not know the IRS rules, or he does and is playing a common Wall Street game of hoping that you don't and will trust his misdirection.  

This is very late to the game on this thread, but for posterity's sake: regarding this question it might be helpful to look up Fannie Mae 1038a - it appears to be the worksheet used in conforming mortgage applications to ascertain actual rental income, for Debt-to-income calculations.

I believe that’s what has inspired so many to attempt the flipping game.

I want to be able to plug in different assumptions and war game this project in excel. 

Just purchase a four-bedroom for bathrooms duplex I am very proud of myself and I also would like to purchase more in due time I'm trying to learn all I can about the real estate game the investment property and all I downloaded a book with BiggerPockets I like to say thank you is a lot I did not know

But by the time you have 10 properties you would most likely have a better network and good foot in the door of the real estate investing game.

I’m just hungry to get into the game.

Any clarification on that would be appreciated.Also from my research hard money lenders want you to have skin in the game.

After paying off the liens totaling $25K, he's still ahead of the game, though not as good as he thought.Bottom line is, liens follow the property, and if not paid, is on the new owner.

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