they worked, and took their money and invested it into apartments and homes..and now they get to enjoy the fruits of their labor...just like i take the profits from my flips and invest them into rentals,and as james plans to...it's very difficult to live on a few rentals, especially if you plan to buy more...plus, the bank wants to see additional income until you have a subsantial amount of rentals...however, if you work at it long enough, eventually you can be a buy and hold only guy, as i plan to be in a few years :)

Additionally, each level may have different goals and the same person may be in each level but at different stages in his/her life.

I have two properties, a duplex and a SFH - so three units, and I've been doing it for about 18 months.What I've found so far - and admittedly it's a small sample size - is that there is usually some additional investment needed after buying the property in order to get it up and running.

In a 3 bedroom, some will say that at least a half bath is recommended in addition to a full bath, some will say a second full bath is needed, and some will say that the single bath is good enough.

Listed below is a summary of my financial and credit profile: Income/Savings:94K annual income (58K from primary employer + 36K combined from part-time work)20K in savings and have an additional 20K towards a downpaymentCredit scores: TransUnion 649, Experian 665, and Equifax 637 as of 12/10/11; credit simulator claims that my scores should jump ~20 points if I pay off my credit card balancesDebt:About 3K in credit card debt; all currentAbout 380K in student loan debt (majority from medical school); but all student loans are current and in deferment.

Okay did a wrap with a seller.Added as a additional beneficiary on the policy.Policy comes up in March.Insurance company was fine putting me as an additional insured but then the owner of the company calls the seller a few months after closing and said his employee never should have told her that.She doesn't have any written communication or a recorded call from the employee saying it was okay just the phone call before the closing happened.Now the owner of the insurance company says he wants to see the seller back on title before he will renew the policy.I mentioned I could add her as additional insured and she said the lender would be required to have her as primary.She is freaking out about the insurance issue and thinks the lender will call the loan.She wants a quit claim back to her and an agreement form her attorney that I manage it but still own it and I can buy her out at a later date.I told her I would not agree to this.We have completed substantial improvements to the property and have gotten out the bad element.What I have come up with I believe will shed light on her true intentions.I am thinking of creating a Joint Venture partnership or something similar where she is given 5% non-controlling interest in the property.This would add her back on title and then the insurance should not be an issue to renew.I am checking with an attorney on this now.Want to get thoughts on this issue.

NOTE: Currently injured from a work related injury, I don't plan on going back.I'm finishing my degree in Business Admin starting next month, and looking to get additional education in the Real Estate Field.I'm at the point of having to make this work!

Since I already have the buyer, I'm just trying to avoid two closings and additional fees.

If you are not taking in any rent you may consider this a second home and deduct mortgage interest and real estate taxes as if it was simply a second home.That would be why they cannot depreciate it.In some cases such as additional depreciation allowed on business(non-rental) assets you may take additional depreciation the first year.To summarize:They will not be able to depreciate it unless they are in a for profit activity.

Sometimes you can get an extension for an additional fee.