Any business or corporate entity looking to execute residential projects on a certain scale (which is sort of a regulated activity) either has to obtain a license (for the entity) or contract/retain a general contractor.

I imagine in time, most areas that do not already have rules and regulations (not just in Oregon) will implement them.

This step ensures that your IRA remains compliant and that you don't inadvertently violate any regulations regarding personal guarantees or liabilities beyond the property itself.

I don't think you're a bad person nor do I think you mean to be discriminatory, but regulators will see your posts as evidence of discrimination.

@Matthew Wright you're going to have a hard time doing this.Currently, you are bypassing a LOT of regulation requirements by letting the prospects pay the 3rd party directly.If you want to collect Application Fees, you will need to take on all the responsibilities & corresponding liabilities of Fair Credit Reporting Act and Data Privacy regulations. 

I would try to avoid Berkeley and Oakland because the laws heavily favor tenants and who knows what local regulations could be passed. 

Consulting with a tax professional is highly recommended to ensure compliance with IRS regulations and to maximize your tax benefits.

Even if delivered vacant it can take a considerable amount of time to legally de-regulate a stabilized building and it mostly requires you to have the units vacant for a period time (no cashflow).

I'm not opposed to this strategy however, after looking into NC section 8 state rules/regulations, I have some hesitations.

This could streamline the process and align with their goal of Cousin A cashing out equity.Consulting a Tax Professional: It’s crucial to consult with a tax professional to ensure this arrangement complies with IRS regulations.