New Homebuyer Here! Questions on FHA Loan, Property Tax Assessment, and More

[Kyle McShea]

Just signed on my first offer and I got a couple questions / thoughts

House Hacking ... Legality?
I understand when you sign an FHA loan you must state something on the lines that the house will not be registered under an LLC. Well then how am I going to rent the rooms out of the property while I live there? No shot I am going to trust my tenants to not sue me that's crazy. I am talking to a lawyer to outline our plan tomorrow so we execute legally, but there doesn't seem to be any information available explaining how people are pulling this off. So any insight on this would be greatly appreciated.

How are properties assessed for property tax?
Let's say I buy a property at $500,000. It was previously assessed @ $250,000 with a $1,500 yearly property tax payment. How would my purchase for the property affect that property tax? I see online its 0.45% of the assessed value, so how do we get assessed value? In a Ben Mallah YouTube video I heard him say 80% of buy price is the assessed value, so would that mean ...

$500,000 * 0.80                       = $400,000 Assessed Value
And then $400,000 * 0.0045 = $1,800      Property Tax

So $1.8k yearly property taxes is correct?

Requesting Buyer to assist on Closing Costs
We requested the seller to offer cash towards our closing costs. Is the reason why this is lucrative to the seller because it's money that is able to be written off as a loss? Why do people like to go that route does it cut down on capital gains? It makes sense from surface level but I feel like there's some deeper insights I can learn from understanding the value proposition.

REI is ****ing sick
I have learned so much in the past 24 hours after signing an offer I hope I crack a smile on one reader reflecting the beginning of their journey.

Appreciate all and any insight