Live for free or for no more than $500-600 a month.  

They need to be the same size (or within 10% of the subject house), within about a mile (no more), and sold within the last 90 days.

As it turned out, the HOA had updated their policy to say no more renters.

These guidelines require that no more than 25% of the livable space be dedicated to commercial.

I don’t have a problem if you want to build a nice house; my main point is you are not getting a $400k heloc which is what your post implies.Here are my personal rules for  Building a personal residence: no more than 25% of income to payment, don’t go so custom That you can’t resell, Find out how long $500 k homes take to sell in your area; what percent of people in your area can afford it if you will sell in the future. $500 k would sit for too long in my area and I would not do more than $350k here, but that is just me.Good luck 

No more than one family may occupy a dwelling unit.

He's not returned the keys to me yet, but he claimed that he move-out already, no more obligation with my property, will not continue to pay the rent (even though his lease contract's not end), will not pay any penalties, and he doesn't agree to be charge this month rent from his deposit. 

What are your suggestions for someone who simply wants in on 10% of a home purchase but wants to put no more into the home OR deal with mortgage tax issues going forward?

Is there any specific type of inspection which could confirm there is no more issue with the house regarding the water damage?

If everything is opened up for him a rewire should be no more than $8000 if they aren't touching service inside and out.