*Note: this post is intended for investors who actively DO NOT automatically file a 1040 every year, unless they've incurred a tax liability.I'm wondering what difficulties investors who understand (have read the pertinent details of the tax code) have faced when engaging in investment opportunities that normally require an investor to furnish tax returns, and what solutions have they come up with.From my experience in banking, I understand that institutional lenders normally require a borrower to furnish yearly personal financial statements and tax returns.

I recently engaged an owner that posted his 5 unit property for sale as a FSBO.

In Northern CA (the real northern CA) Shasta, Trinity, Humboldt counties with the hot weather and long seasons, there's plenty of cartels out in the forests growing, alongside legal growers now,  With growing pot becoming legal, many of those that once bought from others can now grown their own.

Another tactic would be to invest in a fund that has residential debt as its primary asset class, this way you are a passive investor along side other investors and your funds are spread across multiple assets which helps to spread out the risk.

I'm very early on, NOT actually engaged in searching for the a building today.My COH will be $500-800K, I want to be totally involved with every aspect of the transaction, the ownership.I will create a high-quality place to live, a destination to be desired.In your opinion:What are the questions I should be asking?

I'm not sure why that's confusing.Most people start a thread to engage in dialogue, educate others, or learn from others.

@Nicholas Baughman You won't know if they're squattors or owners or renters, and depending on whether they engage with you, you may not find out for a loooonngg time.I have no experience with buying occupied bldgs with non-cooperative tenants, but I know enough of the details in our area to know it's a specialty you'll need to be good at or hire someone who is. 

An idea I had, following on Rayland's (Seattle)'s idea was to sell the project, with approved plans ready to pull for construction for maybe $50k over cost, and ask for a % at the backend, with the understanding that I would stay engaged in the entire process for learning purposes, while minimizing risk during construction phase.

I’ve been on BP for a little while but have been a listener/learner, now it’s time to engage.

Go all out and play the risk game alongside others who have a low cost portfolio to keep them afloat if disaster strikes?