While tenant protections are strong, landlords still have legal recourse to evict non-paying or problematic tenants.

We have tried brainstorming everything from purchasing the Phoenix home and keeping the mortgage as is in Washington (essentially a family estate), renting it out and using that cash flow to pay for the Phoenix house and trying to break even that way.Thank you for reading this and taking the time out of everyone's day. 

You can come up with your own reasons why all tenants would be paying in cash. 

If you reported less than what they think you should have - expect an automatic adjustment, a letter or even an audit.Since in case of private money you as an investor act similar to a bank paying interest to the lender - should you send your private lender form 1099-INT?

Ask if the seller wants to be the bank, explain the savings in cap gains, and then see if you can structure a lower down payment to go direct and then you can pay the price they want if you adjust the principal and interest in your favor.

Willing to pay for functionality that let's me do this on my iPhone quickly and easily.  

no real way around it unless your in the business and you can offset some of your interest income with business deductions but you still have to spend the money to deduct it.. although driving to your loans may allow some car write off perhaps.but really your going to make money and pay tax's its better to concentrate on the collateral and a safe investment so you actually have some income to worry about.. 

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

Some of my most successful clients have done exactly as you described they had a JOB with a REIT or developer and learned their craft before launching out.Trying to get this type of education paying  companies that just sell short term training is very hit and miss. 

A wrap-around agreement is a type of secondary mortgage financing and involves the buyer paying the seller directly for a residential property — often at a higher interest rate than the original mortgage.