In the past, RentingFamilyMember has filed Schedule E and apportioned expenses by rental percentage, including mortgage interest and real estate taxes between Schedule E and Schedule A.

Good morning everyone. i would like to purchase a property that has a court ordered sale because one of the two seller didn't want to sell the house. 

Its cash offer so our real estate agent recommamded to close in 3 weeks. we have inspection scheduled this week. 

It also is helpful to have a California LLC in case you ever sell that property and move into another state so that you do not need to form a new LLC altogether with new operating agreement, just re-register in the new state as a new foreign LLC.

Sell the lead, not the property.

It is not going to be our main residence and it will be a rental property for a few years before we sell it.

I’m torn between selling it and pocketing that equity, invest it in index funds, my Roth IRA, and keeping some in my HYSA, etc.

Numbers don't pencil out for a 30 year mortgage, but property still sells! 

If you plan on renting it when you exit the project instead of selling, you could do a cash out refi at that point using something called a DSCR loan.

Uses the common rents on the 1007 rent schedule of the appraisal to approve based on rents.As long as you can show a .85% DSCR or above on rents to PITI your good to go on the approval.