.* Another thought is that if rents rise over time (hopefully true) then the passive losses would be consumed partially that way also (ideal case).* I think a 1031 exchange causes the "suspended passive losses" to roll forward into the new property, so the depreciation recapture does not occur, but am not certain.In the end we personally still ended up wanting to mortgage our new purchases, under the idea that we could obtain several properties with the same amount of cash, and would have capital gains on several properties as well.

Then if the 2nd deal is a different type and needed to be held in a different company - then set up your 2nd company.You can set up the companies yourself at the local consumer affairs office or you can pay a paralegal to set them up with all of the proper binders that you will need in the future.  

I'd rather cross t's and dot i's on loan paperwork than on legal paperwork while preparing a defense.I definitely appreciate your advice and the healthy dose skepticism I see in most of your posts, however, what I'm looking for is the correct go-forward path, not the don't-do-it-it's-risky path.Just because 50 title companies say they won't perform a double-closing doesn't mean it can't be done and it certainly doesn't mean double closings are illegal - it just means you need to search for a title company that's smart enough to handle the deal.

All the above will be a real PITA and time consuming.

Never really sold internationally, I can see all kinds of time consuming issues, hope they speak english too.

RESPA is a federal law that helps protect consumers from unfair practices by settlement service providers during the home-buying and loan process."

Because I have mortgage debt I pay monthly, plus maintenance (primary residence is a co-op), but I have no consumer debt.

With that being said, I think you should decide how involved you want to be involved in real estate investing (Rehabbing a old distressed property is definitely more time consuming than purchasing new construction property, especially if you have no experience rehabbing houses)  I think the 3 biggest factors for you should be.1.

It is a lousy rental in my opinion.When it is fixed up, how much could it sell for to an end consumer?

"Early to bed, early to rise, makes a man healthy, wealthy, and wise" ~ Ben FranklinYou can search Google and find a summary of the book and that may be enough.