I would argue you should add the rent you're not paying into the cash flow.  

If the occupant is in jail it could be argued that he had no way of removing the possessions & might not have received notice of you taking possession of the property.

Long term cash flow and appreciation, time will tell, but I'd argue that a low CAP rate is likely your friend here too, so long as you can maintain positive cash flow and forced appreciation equity position in the short term to make sure you make it to the long term.

Originally posted by @Charlie Fitzgerald:You will have a tough time finding a bank to give you 80% with a seller carry 20% and no money from you...I certainly won't argue that point as I have no experience with it, but i have heard people speak about it on podcasts so I  assumed it was possible.

Federal tax depreciation is 5 years, so that would be the minimum life span you could logically argue. 

I would check your state laws and consult with an actual attorney.You could argue that they are trespassing on your property, and they could argue that they were living there prior to you being the owner and had a lease in place.

If anything, the majority argue for the first properties than an LLC doesn't make sense.

To be a broker is to either be an intermediary between two parties, or to be the agent of one of the parties.To wholesale a property is to represent only yourself as a buyer or seller.Realtors argue that wholesalers never intend to purchase the property themselves, therefore they are merely disguising their brokering activities.If a wholesaler's to complete the purchase, and then turn around and sell the property, no one would say this was a brokerage activity.If the wholesaler where to use a simultaneous closing to buy and sell, few would consider this brokering.It is when wholesalers put a property under contract with no intent to close the transaction themselves, only to assign the contract to someone else for a profit, and to back out should they not be able to find a buyer, that people believe that this begins to look more like brokering than investing.Since it would require meeting a difficult burden of proof for a prosecuter to successfully prosecute a wholesaler for brokering without a license, and because the resulting penalties for conviction are so light, and because a direct "victim" is hard to find, that most wholesalers will never be bothered by the legal authorities, even if they live in a state where the real estate commission considers wholesaling to be brokering.

They will simply argue you didn't do anything to confirm they had the experience or resources to pay you back – all you cared about was the value of the asset.

You could argue lost revenue on one unit while you don't own it however you're in the deal for half as well.