The plan was to hopefully pay less than what would cost us in foreclosure fees and take the property over much quicker than going the whole FC route. 

The plan was to hopefully pay less than what would cost us in foreclosure fees and take the property over much quicker than going the whole FC route.

Quickbooks has to be set up by a pro bookkeeper, its got some crazy shenanigans you have to perform to get it to work correctly for tracking rental properties. 

If you have written your lease correctly then all your attorneys fees can legally be deducted from his deposit or you will get a court judgement that includes the rent plus attorneys fees.

You both are correct in that there was missing info, as the 401k holder is my fiance as she was the one that has recently switched companies.

The hard part is finding the route that works for you.

@Jim T.Logan is correct in that you only report the state income tax refund if you received a benefit from deducting state and local taxes.Instances where you don't benefit 100% from deducting state and local taxesexample 1State and local taxes on Schedule A is $11,000(only itemized deduction)Standard deduction is $10,600You only received a benefit of deducting $400 of state and local taxes.

I am considering going the 5/1 ARM route and put the savings from taxes and the lower payment towards the principle of the home.

The sellers attorney is correct in that you are asking for a unicorn.

The seller never bothered to get a CAL (Commercial Activity License) or rental license, but has applied for one to verify the property is correctly zoned.