I'm about to turn it off because so many cheaper options are available now.If what they're offering is custom development, it's not a terrible price. 

That there is not someone else claiming they own the property, or any liens on it that have not been paid.

The IRS generally agrees, and their audit guidelines specifically address a situation where someone own only a few rentals and tries to claim this status.And, as discussed above, that depreciation deduction is reducing your basis, which has the effect of increasing your gain when you sell.  

hi deurward. thats a tricky issue there. the kids of the brother would actually be the owners now because of inheritance rights. that is, if the mother actually deeded the house over to the son before she died. if she did so, then of course his heirs would have legal right to the house. case closed. however, if the son did not have a will at the time of his death, then the house and his assets would have to go thru probate as he has more than one heir. if i were the sister, especially after 5 years, i would push for the probate. its gonna cost her, but she has a good case simply because the kids have made no effort to aqquire the house house themselves and made no effort to pay the taxes or upkeep on the place. hence, they have proven to have no intrest. i would push the issue in court and see who stands up to claim their inheritance. if any of those kids stands up and says " its mine", then at least she can hit them with a bill for the taxes she has paid and any upkeep. 

I did a preliminary title search on a property where it was quit claimed back and forth between family members every 3 years for the last 30 years or so, but had been in the same family for about 50 years.

It almost sounds like some guru got a hold of you and claims their forms, you paid for, will in some way make you bullet proof if a deal goes South. 

Usually, not always, in a sale transaction a seller proves they have good title to convey, they pay for the search, the owner of the policy pays for the policy, the more customary approach, but local custom prevails, it can always be negotiated. 

Depending on your state there might be something more, but generally you are going to claim the net income on your personal income tax; while filling out informational tax returns for the entity. 

Build up to your demolition days and custom glass shower enclosures :)You are correct on the money side of things.  

These customers will usually get first look and if it is a good deal they will offer.