Quote from @Carlos Rodriguez: Hi Everyone, my name is Carlos I’m from Toronto, Canada.

No, you cannot create phantom losses this way.Some additional issues that we have not addressed:- holding rentals inside an S-corp has many tax disadvantages- you will likely jeopardize your $250k/$500k capital gain exclusion for homesteads- you will lose asset protection afforded to personal residences by most states- you will lose your homestead exemption for local property tax - your insurance will have to change from owner-occupied to rental, i.e. go up- and there's moreConclusion: there're reasons why nobody is doing this clever "strategy" but A+ for trying.

Hello @Jeanette Land - (Great last name by the way to be into Real Estate)...

Just check the local rules to make sure you’re good to go!

Your local laws are going to prevail.

I will be doing my own research on local laws & regulations, but want to do this 100% by the books.

Buy a used book and find someone local who's doing the thing, and make them your mentor.

We're working with a mortgage broker local to us and he has put us in contact with Lendbase as well.

Does your local jurisdiction require you to return those fees if they were not screened? 

Any groups/meetups that i could attend in the local Houston area?