It has the 4 upper 2/1 unit's rented with the 2 lower 1/1 unit's vacant.The reason for the 2 vacancy's, is a Multi Family Parking Ordinance that states, "One parking space for each unit and an additional space for each bedroom".

They add up to 35% in additional operating expenses - I don't know if I'll be able to find any cashflowing properties in my market (New York, CT, NJ) due to price of real estate when factoring in that extra 35% - maybe I'm just not looking hard enough, or in the right areas.

It might be cheaper than arguing and paying the attorney additional fees, holding up settlement and fighting over it.I'll bet the contract and norm is to transfer marketable title, insured title, unless stipulated in the contract, if this is a last minute issue I'd guess it's just the attorney, seeing if he can get away with it in representing his client.There is also another issue so far as financing, if your friend is obtaining a loan the lender will require a GWD being insurable as well, exceptions are made for institutional lenders selling as the property is sold by a corporate body arising out of a foreclosure, a different issue than buying from an individual.Make it a lending requirement for settlement and that SWD may go away.But, ask, are there any exceptions being made and why?

Additionally, I'm a realtor so the commission is an added bonus once the sale is completed.

Additionally, we will put 100 dollars away per month in escrow until we use the option to purchase.

Once that is decided between the two of them then at settlement the title company will cut a check to the Realtor's company, then the agent in question will take the check to their company and get paid on whatever the split is.In addition to that because the sale is not going through the MLS the whole notion that Michael can't pay this person may be inaccurate.

There are however several other factors to consider including the area, condition, and potential appreciation although this should not be heavily weighted.

In addition, taxpayers must generally report all their income (regardless of where it was earned) in their state of residency and pay income tax.With both states taxing the source income, it would seem to give rise to double taxation.

@Fran Flanagan - Your estimates are pretty close but we also have escrow payments for insurance and taxes in addition to the utility bills.

I do this because I have more cash available earlier: you can use all $29,000 now for one house, or you can use ~$7,500 and get a loan for the balance, allowing you to keep the extra cash for additional properties.Remember: The numbers have to work for the deal to be a good one.