Hey @Binita Mehta, I won't speak to the tax side (not a tax pro) but from a bookkeeping perspective, this will complicate your operations (and, bookkeeping as a result) quite a bit. 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.PM us if you’d like to discuss this logical approach in greater detail!

- Could the seller be trying to hide potential major issues in the house by leaving no room for inspection results or could it be just ensuring not to disturb the tenant?

My clients and I have used Cost Segregation Authority with excellent results. 

Though I haven't closed anything yet, I have come quite close and have expanded my network and pool of knowledge as a result.

There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents or loan officers in your area.

There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents or loan officers in your area.

Note if tenant had been there a few years, the walls get spot paint feathered to match.  

I have been happy with my results.

On occasion these letters have resulted in the parties entering a more formal easement agreement.