To intentionally reduce the leverage more than required is a foreign concept to me.Best wishesDan, financially you are, of course, correct.  

For example, the National Association of Realtors (NAR) reports that around 10% of home sales occur without being listed on the MLS.

@Yuval ManorWe have partners who are foreign investors.

I say biased, because it seems fair and unbiased reporting is a thing of the past.  

However, the exact treatment may depend on your accounting method (cash vs. accrual basis), but most individual taxpayers use the cash method, meaning they typically report expenses when paid.

This is how the rental income is reported on their personal tax return."

If the proper reports and documentation are not completed, you run the risk of failing an IRS audit and the cost segregation not being honored.

Did you also include financials/ POF for the down payment/ credit report/ info on yourself such as your experience level operating rentals, to give the seller more peace of mind to lend to you?

Our problem is, with our pet-friendly cabins, guests are bringing their pets and not reporting (nor paying) for them.

@Hoai Nguyen suggest modifying your current lease to cover multi-family setup.Parking, shared access, police report required for landlord to get involved in disputes, etc.