I feel the padsplit model might not be that sustainable if it is that easy for the hosts to have legal troubles.

To align with community property laws and avoid legal or financial complications, consider forming a jointly owned LLC with your wife as a member.

.- Most cities do NOT care if an owner lives in basement, but will not allow a tenant to unless baement has legal egress window.3) Check local statutes if any limitations on how many unrelated roommates are allowed.4) Check with local building dept to see if rental inspections and corresponding requirements.5) Local statutes allow locks on bedroom doors?

I suspect they have probably gone full blown HML doing  A  and  D But yes legit professional and once approved they will fund. 

Right now this sounds like most of the HOA's that we all hate that issue random fines for no real reason, and then attempt to justify it with their bass ackwards logic that they are actually somehow doing us all a favor.I'm not a lawyer, but I would imagine you could also open yourself up to legal action. 

Do not rely on it for legal advice.

You will need a licensed TX attorney to oversee the legal documents, you need escrow officers and transaction managers and business development/marketing.

@Ramada Evans- 1) if buying as a rental and  financing it - your down payment will need to be a min of  15% of the  purchase price   ( so thats either  30,750 at 205K price or 32,850 at the 219K price ...so  not much of a down payment  difference   2) if it appears that there isnt much competition  or interest in theproperty - the lower price might be OK   3)  you might also consider   asking the seller for a seller  credit you can use towards some of your loan costs   4) get pre approved  if you arent already pre approved 

Pace also has shared his legal documents with the community which get updated.When I joined this lifetime membership I didn't realize how much additional value he was going to share.

Agreed mate,I'm all about taking personal responsibility and I have been swindled many times in a similar fashion like many feel on this thread.It seems like these investors including myself in other instances get negligent and don't read between the lines.Especially after trust and a relationship have been established, we become gullible and don't second guess or question.Maybe it's greed for some but in my instance it wasn't.Just innocent and trusting stupidity (No, I'm never a victim as that is ******** mentality in my book).I had some spare $$$ and wanted to diversify in other assets through folks I considered friends and trustworthy business partners.Didn't even think twice to look things over.Looking back, it all makes sense now but it's easy being a general after the battle heheI only blame myself here...I mentioned in the thread further above that I lost to the tune of hundreds of thousands of dollars.Again, it is what it is and it's a lesson.Only myself to blame and have always taken the high road in such instances.As much as I'd like to fight for justice and go down the legal path, it just isn't worth the time and emotion.Upwards and onwards.Become better and make more than you have lost.Each to their own and that's just my personal "modus operandi"