He should know that's only available for husband and wife...If the LLC is multi-member between you and your mother, it needs to be filing a 1065 and issuing K-1s, unless there's something you aren't telling us....not sure how you guys do things in Indiana...Maybe time to start shopping for a new CPA.

I was wondering if it would be wise (or stupid) to purchase a home with little down (5% or 10%), live in it for 12 months (avoid mortgage fraud) and then rent it out while living in a cheap mother in law apartment. 

Most tenants have been single mothers and report that this is somewhat scare some for them.

Necessity is the mother of invention/creativity... 

During the market crash, I new my neighborhood was full of opportunities, but as a single mother, I opted for security and never upgraded myself, nor started investing.  

So we placed our belongings in storage the next day and moved into the fiance's mother's home. 

My first "move" in life was when I decided at 19 to move to the US from France, and try to have a life there.Concerning real estate, I personally don't own anything yet, but I have been involved in my mother's real estate investing since age of 17.

I think your evil plan is the better way to go.I've had many family members and close friends rent out their mother in law basement apartments.

Hello- My mother and grandma currently have a property that they own together.

@Eric B. 10% is a little extreme, that’s probably atypical but in this case the rent was $2,000/mo, there were over 30 qualified applicants that applied, and rents had gone up 10% in the area the previous year, so the big increase was a function of supply and demand.