The tax consequences are $400,000 for a single individual and $60,000 for a married couple filing jointly.

I do not lend to individuals. 

@Brittany Moreland - If I were the type of individual/entity that had hundreds of millions of dollars available to invest, nothing about what you're suggesting would sound appealing.  

There are definitely pros and cons to each so I figured I would just lay out a few benefits and personal thoughts: Small banks/brokerages:Pros:- Some regional knowledge of the market- Possibility of more creative lending guidelines with bank specific programs- Sometimes they have competitive rates for their areaCons: - weak balance sheet (more strict on some guidelines, no wiggle room, inability to be flexible or grant exceptions because they cannot afford to hold less than perfect loans)- Can't scale with clients to different markets- Usually limits exposure to individual investors (they don't want one investor to be too big of a portion of their balance sheet)- Lack of experience with multiple solutions (tend to have 2 or 3 loan products they sell and are too niche to provide tailored solutions)Large banks/brokerages:Pros:- Large compliance departments that understand individual market guidelines (typically each state has specific lending guidelines that augment the national baseline)- Ability to scale into multiple markets with same lender (licensed in many states)- Impossible for individual investors to "outgrow" a large bank's balance sheet (not concerned with one investor's concentration)- More lending solutions available for different scenarios- Often comparable or better rates given the game is volume basedCons:- Can be more difficult to get fast responses if the bank/brokerage does not have good follow up systems in place (or if the underwriting/processing staff gets overwhelmed)- Bad large banks can feel less like a relationship and more like a cog in a factory (less personal)Overall, I have worked from both and worked with both as a loan officer, branch manager, and as an investor/client myself. 

I'm not sure our individual experiences are correlated to what's happening overall but I've definitely experienced many more last minute bookings than ever before.

Quieter tenants translates to: Older individuals without children or noisy pets. 

It’s a fantastic way to connect with like-minded individuals in your market who have been in your shoes.

There’s a demand for individual rooms being rented out.

1099 means they are their own boss it is very hard to hire individuals and not have them be w-2 employees. 

If you’re asking how two immature individuals can handle their differences without legal costs then the answer is that they both have to give up the scorched earth policies.