This ordinarily wouldn't be a problem since the portfolio loans would work through an LLC, however my fiance and I are looking to purchase a single family home for ourselves within the next year.

I have told the purchaser that I will manage the rental free-of-charge until the end of the year so that we don't have to cancel a bunch of peoples' vacations, but I don't think it ordinarily works that way.  

Ordinarily, you don't want to pay the tenant the same you would an independent contractor because you'll end up in a bind if they do sub-par work, don't finish the job, etc.

You're enabling them to live in something they ordinarily couldn't afford.Rescind the offer.

Ordinarily we would just gut everything in the house and throw it in the dumpster.

Such conduct ordinarily is perfectlyappropriate and lawful by persons acting “at arm’s length.”

@JOSH ELIOTI'm a bit confused but the seller will ordinarily select the title and escrow companies.

Its new to me because ordinarily we just assign contracts, buy and hold, or even fix and flip.

Also, I ordinarily steer clear of condos and prefer single family homes, mostly because condos don't appreciate as fast as SFHs (in most markets) and the HOA can range from being annoying to just downright getting in the way of your real estate plans, plus they can force you to pay assessments for upgrades and repairs to the whole building that run in the thousands of $.However, your market may be different because of crazy CA appreciation, and how young folks just starting out can only afford condos as their first primary residence purchase, leaving you with little choice if you want to dive in today to take advantage of low interest rates and expected appreciation.

When you do this the tax you would ordinarily pay is deferred and you are actually using that tax to purchase more investment real estate.But it's the same story - your intent when you buy your property must be to hold for productive use not primarily for resale.