I do have a short sale offer in for a Kent/Federal Way area condo ($85k accepted offer and market price $100k).

Do you need to obtain a federal tax ID number?

Make sure you understand what exactly the scope of the search is, if they check for just liens & judgement or do they also check the tax status, federal tax lien search etc..

Municipality and federal liens stay on the deed.

Javon, as Marianne points out, just because someone is facing a demand for payment doesn't mean it's a property for sale.You need to be aware of federal laws that cover pre-foreclosure issues of what you can talk about in approaching an owner.

This mortgage interest offsets your taxable rental income which also reduces your tax liability.

How do you show income, you'll be recognizing income as an equity, in trade, still a taxable issue for you but you have no money to pay it....I'd suggest you think of lowering your mgt fee and compensate in other ways, like through maintenance and repiars and contracting fees.....some do that. :)

Charging a 1/3 more a month puts a real punch in the cash flow of the tenant, especially college kids, you have a $300 unit and you're asking $400 maybe not a big deal for a roomer, but at $600 and asking for $800, that becomes a marketing issue in getting it rented and pinches the ability to pay.What happens when people get "free rents" it's a taxable matter!

It can be drafted outside of the 1031 Tax Deferred Exchange and would be taxable as an installment sale note under Section 453 of the Internal Revenue Code.

The issue is whether they ahve a taxable gain under U.S.