Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

I like to use removable pillow covers with down inserts.

This is the percentage of costs (purchase and rehab) covered by the loan.

The key is ensuring the property can generate enough income to cover the payments and any renovations you plan.As for pulling out equity later, this depends on the agreement terms.

As for the area, looking for an area where the rent will cover the mortgage.

My son currently lives in the townhouse b/c he is going to school and works in the area.Since he is young and starting out in life, I would like for him to only cover the basic costs (taxes, HOA, utilities) just enough for me to break even (I believe that will put him slightly little lower than market rent rates). 

And if you have your home checked for termites annually, any treatment treatment woud be covered by the vendor.

This covers most people's schedules.

My question is: Can I use form 1065 to cover all the costs like property tax, mortgage 1098 whose receipt are for individuals?

The mold house would only be a good investment if you can buy it at a low enough price to cover the necessary renovations.