Given the timeline and the nature of these expenses, I'd appreciate any insights or advice from those familiar with tax regulations in such situations.Additionally, I'd like to know if I can claim depreciation, mortgage interest, homeowner's insurance, utilities, HOA dues, and other expenses associated with the rental units of my home from 09/08/2023 to 12/31/2023.

Thank God we are not living those times any more.It seems that you are a  young person, so naturally, you may be comparing the rates you were recently quoted to the rates of January 2021.

There are certainly people who skirt the rules by not disclosing the nature of the downpayment money or where it comes from but it seems like your partner is doing this the right way.

To me this makes little sense if you can get subsidized loans (meaning qualifying for Fannie Mae, NOO rentals) because 1) LOCs are short term debt and rentals are typically held longer term and 2) there is no guarantee the LOC wouldn't be called due by the lender... that's the nature of credit instruments. 

Usually banks or credit unions want you to have some skin in the game.

I think its going to just take some time for the end buyers in the chain (the people responsible for buying the MBS through the whole process - generally banks, insurance cos, pension funds) - by nature are very conservative and slow to adopt to new things like SRO.Its a tough situation because the message a lot of times ends up being "rent it out traditionally on a single lease since thats more conservative" yet they are out of touch with investors who can only cash flow in this current environment with creative solutions such as rent by room, etc.

Personally I'm not really worried about natural disaster type issues in DFW. 

@Mohammed Rahman yes, that's exactly what's tricky for me... for you all it's quite simple.. it's like I show you how to apply a KCI VAC and say now it's that simple.. just prep the skin apply Elkins to the periwound apply the VAC with setting of 125mmHg .. you're gonna look at me like what the hell, lol... that's how I feel.

Think thats just the nature of the beast.

This is because as the maker of the deal they want you to have "skin in the game" to protect their investment into the deal.