- The freedom to depart from the facts of a matter or from the conventional rules of language when speaking or writing in order to create an effect.It was the number 1 book recommended on BP podcasts:http://www.biggerpockets.com/forums/311/topics/114495-every-book-ever-recommended-on-bp-and-times-recommended

There are specific rules covering this.I have been allowed to write off deductible amounts higher than that as an expense and passed an IRS audit but off the top of my head I can cite the rule.

While the properties may not fit the 2% or 3% rule, they still cash flow very well.

If so, and assuming you don't want to spend a lot of time digging up a better deal, go for it.Now, all that said, the way you phrased your question(s) leads me to believe that you probably don't have a handle on one or more concepts:- How to analyze deals- How much you'll be losing to expenses (check out the 50% rule)- How sensitive returns are to changes in investment, income and expenses- How leverage will impact returns- The time value of money (a dollar today is worth more than a dollar tomorrow)I think if you spend a couple weeks reading and getting familiar with the concepts above, you'll be able to answer your own question...

You might check city ordinances to see if they have any rules, such as maximum 2 people per bedroom.If this is a family, breaking them up could result in losing the tenant.

He is also on Prop 13 tax rules!!

In this way we could stay away from some bank rules on loans and have more freedom to potentially make a lower down payment and have the loan as partners.

Using the 70% rule, determine if the numbers add up.Now let's say the numbers add up:4.

I have not ruled anything out at this point.

I've never really dealt with this scenario first-hand (and I don't ever plan to), but I do talk with a lot of tax delinquent sellers who have back due HOA fees - and just for the sake of expanding my knowledge of how this relationship works, I'm trying to fully understand any/all consequences that come when a property owner violates HOA rules like this.