I was speaking at an IMN Note Conference a few years ago and a "guru" had taken several of his paid "students" to the conference.

I paid cash.

Signed up in August, talked with an agent and still waiting for a pre-approval letter.

You basically own a commodity and commodity means low prices and low investment returns.After years of investing in this type of locations, I've found that, with few exceptions, the way to make money with this kind of condos is to buy as early as possible at the lowest possible prices and then flip when the condo is delivered to those who don't want to take the risk of pre-construction before the other owners realize they won't make the promised rental income and might want to sell as well.In the spirit of trying to be helpful and positive, here's what I'd do if I was in your position and didn't want to sell:1.

They then self-manage the recovery house and you are paid each month from the people renting by the room.

And, if you follow proven processes by companies like the ones below, your odds of success are high.National retail chains follow a straightforward process when selecting store locations and localizing their inventory (click to enlarge):The same process works in real estate.No property ever paid rent; the tenant pays the rent.

That is very important.The mortgage needs to continue to be paid or they will lose the house to foreclosure.Depending on the type of loan, the bank will sometimes allow the child to continue making the mortgage payment and live in the house.There is a lot more involved, but start with meeting with a probate attorney or title officer. 

Paid for by REI both money and time.2.  

I have seen a lot of investors in deep dirt , because they paid retail price on as is property that is not worth half of what it costs to buy and fully rehab it.2.

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.