I then moved to Puerto Rico for 4 years, from there I moved to Texas before returning to Washington.I recently bought a 4(5) bedroom house on 4, 5 are lots in Anacortes, with 2 other people.

I am now a retail real estate agent (and I privately manage SFRs for owners), the trustee sales are almost over for the mid sized flippers around here ("my" money is buying non-performing loans, better returns on time and money). 

The only ones enjoyed better returns are the people who bought at 2009-2011 with cash or high down.

They were happy to put their money to work making a good return. 

The difference is there is zero risk to paying off debt faster, you know your exact return.

That new vehicle is likely to be a passive, LP position with a very strong sponsor / operator relationship I have where his money could be pulled out or reinvested after 24 months and would achieve roughly a 10% cash on cash return payable in quarterly distributions.

However, if you plan to sell it in 2019; you have to decrease the basis by the depreciation you took(or should have taken) on your tax returns.

If the FMV was 1K or even 3K over asking, nobody would want that risk for that small of a return.

No expenses are deductible on personal days.In this case - The IRS may come and tax you on the rent and disallow you any expenses.On a side note - Allowing a relative to live rent free may require the filing of a gift-tax return if above the annual exclusion.

Not my best cash flow but definitely my best cash on cash return!