Check State Requirements: In addition to federal requirements, check if your state has specific requirements for reporting payments to contractors.

no. many folks here are ignorant, self righteous and bubble hasnt popped yet. many here think its still ok to discriminate or try repunish. many my tenants are have been felons or misdemeanors. ...1. know many who are actually innocent only self righteous dumb sheep like government types ignore reality that 25% of all convictions are bogus. see innocence project as examples.2. if do full background check on all tenants. 

Think of tax law as being it's own appendage on federal law.

Turning the studio into a functional Airbnb (if its allowed by your HOA or local government rules) or long term rental to increase your income.

Tax sales are a balancing act among (1) the need of government to collect property taxes and, if owners will not pay then, then to provide incentives for investors to purchase the tax rights and (2) investors, who need an attractive return for the risk they are taking, and (3) citizen taxpayers, who should not lose their property and all equity because of small debts and perhaps temporary or at least relatively short term financial difficulties.

There's absolutely not any federal level housing law on this.  

Also, most loan assumptions are available only for government-insured/guaranteed loans (FHA, VA, etc.), so keep that in mind when shopping around.

So as far as I am concerned, I can only speak to the rehab part, it is a little off or light, also it may be that I come from commercial/government construction sector, so that might affect my opinion.

In Michigan, the utilmate fail-safe is we can garnish State Tax Refunds until paid (can't garnish federal returns).

I would go for a midsize regional bank, with a Federal lending Cap limit of say $10mm or higher.