I feel like there is some gray area because it's owned occupied. 

Retirement accounts have many gray areas.

I looked at some of the previous deals I was sent and it seems like most of them are in Point Breeze, Port Richmond, Grays Ferry, and Brewerytown. 

@Kody Thompson thank you for your help!

@Michael Thompson the house is in Atlanta.

Thanks @Greg Dickerson, @Spencer Gray, @Roni Elias for your comments.Yea, I agree with two big factor being the debt type, and rent increase assumptions that will be effected in deals going forward. 

Kody Thompson is the CEO and founder of Kaeo Capital. 

Our attorney (who wrote the local brief on the LL/Tenant law) stated that this is a gray area of the law, and that we could defend this practice as the law states Landlord cannot collect more than $20 -- it doesn't address 3rd parties.

So if it's a gray area, I want to go with the caution side - not the side that could give me a whopping tax bill if I'm audited.Does anyone know how this should be treated?

@Kody Thompson It is a cash deal and have been put on auction.