There’s no one answer, a lot depends on the investors personal financial position, tolerance for risk, goals, etc.  

If you allow him to live there without being financially responsible, you will tacitly yield tenants' rights to him, but without any obligation on his part.  

I think the testimony of many on this web site would indicate there is great financial benefit from taking either of those approaches.

One, my wife and I were recently looking around for our first place to own, and the financial side of it seemed rather rough for NYC.

I love that you are thinking through your options and making sure you are making the smartest financial move.

We've worked through most of the financial aspects, built in buffers, and taken a cautious approach.One key priority is setting up checks and balances to reduce the risk of fraud, especially when it comes to handling funds.

They want to get to their financial paradise, and then call it quits.

For this to happen, I would need to acquire about 2k a month in cash flow after taxes (hoping to do it using BRRRR).My grandparents (who live in Spain) acquired financial freedom through about 12 buy and hold properties and it always left an impression on me.My best friend who lives in the same city as me is a general contractor and has done 7 BRRRRs and 1 flip in the last 4 years.

Love this post, I've been in sales for 6 years, after a 15-year stint in education. 

If it is a $700k purchase, I'll make an educated guess and say you can do 105k of bonus depreciation/write off if it were 100%.