I would imagine the bare minimum would be that the past 2 yrs tax return would reflect rental income for the investment unit(s), as well as not claim business losses etc for the primary residence unit.

Phillip has told me that he shows loss on his tax returns for last 20 years because he had a huge business with China 20 years ago and he lost it over 1M, that's why he was writing the loss off every year and he had not to pay any taxes because of that loss:-)Thank you very much, Phillip Bundy for this lesson!!!

The Profit and Loss sheet, along with tax returns tells the story, even if you have to go back a couple of years.  

The savings, if I was to go the cost value way, wasn't worth the loss of sleep for me. 

I suspect I have substantial energy losses because of it, but even worse, humid Summer weather is closing in and I bet I'll get water condensate like crazy.So, I'd like to insulate this ductwork.  

I'd have to be sleeping with you or, you'd have to have pictures of me sleeping with someone i shouldn't be sleeping with to liquidate notes that will generate recovery against my losses upon foreclosure. 

If you buy a $100,000 property and depreciate it over 30 years, then on paper you are describing a "loss" of $100,000.  

@Bill G  I am sorry for your loss and I pray everyone heeded your advice. 

One tenant = one source of rental revenues (unless you lease the roof for solar..but that's another topic).At a property with multiple tenants/buildings/suites the owner then has the ability to absorb the financial loss of a vacancy while having other spaces bringing in revenue.

If so, that should have been a red flag.If you're in an especially low-rent market (and it sounds like you are) and you're concerned a 12 month lease will make you less competitive, you might consider using an inexpensive loss-leader like a "free 40-inch TV" with a 12 month lease as an incentive to sign.Just remember the price of the TV when you need to go after the tenant for a broken lease.