Like Adam said, some attorneys like to have estoppels signed to make sure there's no open tenant claims against the landlord, the deposits are accounted for and their rent is accurate and current.

I don't agree with the claim you made they're approving loans for buyers who can't afford their new payment.

Through strategic reclassification of assets, the property owner was able to claim additional deductions of $215,000 in the first year alone.

Can you claim both as your residence?

Actually, I did a cost segregation on a 106-unit property I own, and even though we could only claim 80% of the bonus depreciation last year, it was still a big win for us and our investors.

He claims to manage $500 million in assets.

If you take on the assigned debt and make a genuine effort to collect it, but it remains uncollectable, you may be able to claim a loss.

CA recently passed statewide anti squatter law (sb602) and a couple years ago passed a law to try to prevent bogus ESA claims (ab468).  

My point about your father-in law merely relates to how his insurance carrier would likely respond to a claim- coverage would likely be denied.

Imagine someone claiming to receive $2,000/month in rent, maybe even have a lease and deposits from a family member to make it look legit, but then the market rent is only $500/month.