For example, if you purchase a $500k legal balance (unpaid principal + accrued interest/fees) for $200k, then rehab and sell the property for $300k, can you write off the uncollected $200k (the $500k - $300k difference i.e. not pay taxes on your profits, as on paper as the lender, it is a "loss")?

@Daniel Dietz,Ignoring the internet deduction issue, would make sense financially for you ? 

This is very doable for me given my current financial situation, however after two friends recently expressed interest in moving in, I was thinking of "house hacking" and renting two of the rooms to them to offset some the mortgage.

The FIRST priority is to take possession of the property and get it rented to stop the bleeding Once the property is rented and you have an idea of the total amount of your loss.

Are you looking to create financial freedom on investing, or is this just a supplement to a holistic retirement strategy?

Hi BP forum members,I read Rich Dad Poor Dad years ago and since then have always been interested in becoming financially independent through real estate.

This Operating Agreement will also spell out important things like how profits and losses are divided.

One major financial aspect that many people do not take into consideration is the effects of appreciation and property taxes. 

My main reason for considering commercial is because 1) the duplex and triplex and even 4plex market in my area is very competitive and it drives purchasing prices too high. 2) I guess I’m kind of a pretty ambitious guy and my wife has followed my lead and trusted my guidance and I want to help our growing family (2 kids and 1 on the way) meet our financial goals as fast as I can!

Collect money fee, acquisition fee, ongoing management fee,   watch contractor do upgrade fee, hire contractors fee,  disposition fee,   fee for doing refinance,  fee for doing financial statements,   20% fee if sell property at profit.If investor happy with their 5% preferred return great..