Yes/no, it's not like lenders do inspections but I encourage you live there, learn, and follow the guidelines of your loan. 2.

•There are also numbers of different guidelines that you need to follow when it comes to the 1031 Exchange.

Also, I don't know if it would be worth it from a liability perspective either, but would advise to chat with an insurance pro/legal pro.When purchasing a primary residence, conventional loan guidelines will require you to take down the property in your personal name.When it comes to taxes, you'll likely be able to take the standard deduction AND itemize Interest, Taxes, Insurance, Depreciation, and expenses prorated based off the rented portion of the property when reporting the 1040 along with W2 income.

I understand being in high cost market and it being difficult to buy but the "cash flow on paper" inexpensive markets is a gamble.

The way the guidelines are written is that you have to intend to occupy the property as your primary residence when obtaining the loan, and this is generally demonstrated when you live in the property for at least one year.

I'm not saying you can't make a decent return on rentals - I and many others here have done great with it - but if you have a well-functioning, profitable business that you know, why would you gamble money into Memphis *******es, to put it bluntly? 

They loosen the guidelines last year and made it much easier to get ADUs permitted.The other major risk by not permitting is if you decide to get it permitted later on, it is likely going to be more expensive.

The law imposes specific rules to protect buyers, and here’s how you can stay compliant:1.Understand the Rules•If you’re financing to consumers who will live in the property, you’re required to follow Dodd-Frank guidelines.

@Barre Gambling I am curious... in your opinion, is our area in central NC underserved outside of the Raleigh-Cary-Durham MSAs?

It is very much case-by-case and requires understanding of the current regime for personal itemized deductions, as well as gambling on the proposed changes to this regime by the current administration.