The bulk of the costs are all the many vendors: appraisal $700 underwriting/processing $1000 settlement $500-600 title -guess not knowing location $400-600 notary $200 recording $50-100 transfer tax unknown $ varies greatly $40 CPL $70 wire   then points or a prepay

The laws about late fees, and whether a landlord can deduct late fees from a security deposit, are different in different states, so you'll need to design your lease accordingly so that it's not in violation of any local laws/regulations.

.* Strategy 2: Rental properties for the tax benefits as well as extra income. 

Hopefully property tax is not crazy. 

Take the time to meticulously crunch the numbers, taking into account various expenses such as mortgage payments, property taxes, insurance, maintenance costs, and potential vacancies.

Whichever STR agency you are going to use study the laws and regulations, as well as taxes and fee's for AirBNB/VRBO or other.

. - Your cost basis for tax would be actual costs including purchase price and improvements.

I'm thinking the marketing might work the same way as properties with delinquent taxes. 

Just be careful of those pitching costly entity formations and tax planning, you may not benefit from that quite yet. 

If yes, there is no deduction to them since you are obligated to pay back the $20,000.if you do not pay back the $20,000, they may have a loss.If they are a partner, eligible to recieve a portion of the rents / profits from sale, there may be a partnership which a partnership return would be required.Their share of income /loss would show up on the form K-1.