Greg,I agree with Josh that you're getting overly upset by what sounds like a minor incident.

Several people were talking about how upset they were with President Obama.

And that definition can be changed by the municipality passing an ordinance.More discussion of ow a single family is defined is at this next link: http://www.biggerpockets.com/forums/52/topics/10860-how-many-people-in-a-single-family- And the neighbors will be the ones blowing the whistle on you, should you exceed the maximum allowed, AND they get upset over something (parking, noise, guests, parties, etc)

I dont have time to get upset when something breaks .

After extensive research, I set up an LLC in NY with the help of a great lawyer that I found on the Internet.So I have an LLC and a US bank account which also took some time to set up. Set

But here when they break it down (underwriting fee, doc prep fee, admin fee) people get upset too.   

We do not want to make exceptions for certain tenants and then have others upset that they were not allowed the same circumstance. 

Also they don't want to upset their seller and potentially lose the listing.

You did not mess anything up, @Alisa Keith.The only thing I agree with in the previous answers is "talk to a tax professional" :)The property was never placed in service as a rental, so you cannot deduct holding costs and depreciation in 2017.Everything specifically related to the property (repairs, taxes, insurance, utilities, interest, etc) is stacked up, set aside and eventually deducted against the sales price.

Don't get upset when, after buying construction materials for a home in a $20K area, if things like job-site-theft occur.