In other words, write that gift off in your mind so that when they stop making payments or the litany of excuses starts, you've already accepted it as a loss.And if a bank will not lend to them, then I think you have your answer - and hopefully you can blame it on your "partner".

I have a blog where I write about Real Estate  www.homebestchoice.com and I welcome you guys there too if you would like to share experiences and tips, would be a pleasure to have anyone's help on it. 

@Jake Thomas, I think I am leaning towards writing my own purchase agreement that is very simple and easy to understand for my customers.

Would love to know your thoughts about my management style, what you learned from and what you disagree with.

Write the HOA .  

However, when I look at the IRS publication on per diems it says self-employed persons can write off food per diems. 

The general style, build and feel of homes in these 2 subdivisions are very similar, although I am only analyzing Oak Forest.

You could also add on an amount for bringing the apartments up to current style, but still use lower rents for income assumptions because you're the one who's going to have to do the work of raising rent.

I am fortunate that duplexes, specifically "shotgun doubles", are a very common architectural style in my city. 

Will re-read all the responses tomorrow and write a more thorough post tomorrow.Thanks,Preetham