I find it strange that a seller would admittingly tell you that they are committing tax fraud.I think the thing you want to avoid is providing incorrect advice which may cost him/her a lot of money.Best of luck.

We bought our first unit ( 3 BR x 2.5 BA) in February 2022 its currently rented out through March but is not cash flowing due to a few incorrect estimates on my part.Some of these items are minor and will work out with time but the biggest blow to profitability is the HELOC we took against our primary residence to come up with the payment for the rental.

@Stefan HirniakSo, your lender is absolutely incorrect. 

Don't get me wrong; there are plenty of issues/problems/quirks that old houses have that new houses don't, and an old house can obviously have hidden problems and big repair/maintenance bills too...but, the point is: a brand new house is not a foolproof solution to repairs/maintenance (and in some cases, a brand new house can be a much bigger gamble than an older house).This is a particularly important lesson for inexperienced investors, who tend to be the most prone to "shiny object syndrome" (the tendency to let nice aesthetics distract from real, underlying issues).

He noticed some of her guests, and asked if she was around, they said yes, and sent her out.She said she hadn't checked her phone in days, and began to back talk a bit, when she was told that the vehicles were incorrectly parked.  

Let’s see I disagreed on the taxes (definitely incorrect and internet search will show that in one minute), disagreed about the returns being “on paper” (definitely wrong as both case Shiller, neighborhoodScout, and numerous other source would show). 

If the properties are currently owned as tenants in common(all individuals are written on the deed), each person would report the income separately(for their share) on their return.Trust does not own the property so filing a trust return to include the rental income would be incorrect.

Plumbing by-passes or abandoned lines; collapsing sewer lines; badly corroded supply and waste lines (both can be from inside or outside corrosion) fixtures with very hard to find components; hidden electrical junction boxes...or non-existent boxes at junctions; outdated and/or underrated distribution panels; knob and tube wiring improperly connected to, or extended with, romex; Switches wired incorrectly, breaking the neutral instead of the hot side; no, or poor grounds for improper outlets; overheated connections, outlets, switches, and light fixtures; improper wire sizes for circuits and overloaded circuits; and plenty of others...all very costly to troubleshoot, locate, and correct individually.

This can be done if a taxpayer believes that the assessment is incorrect or unfair.The specific procedures for protesting a tax assessment vary depending on the jurisdiction and the type of tax involved.

@Terry ThomasYou heard incorrect regarding the tax implications of sole proprietorship vs LLC.