@Chris Williams  I believe that you are talking about the distinction between a traditional IRA and a Roth IRA. 

Reason I recommend this is Dodd frank and if there is ever an issue and your Not licensed to service loans in that state, not only are their fines to deal with but possibility of invalidating the note and having to return funds etc. don’t want to scare you but lending vs servicing are two distinct issues that people need to be aware of when owner financing

When you are analyzing a BRRRR deal there are 4 distinct cost areas you want to recoup when you do the Cash-out Refinance.1.  

This distinction is required because your " Investment expense" is subject to 2% of AGI, but rental expenses are not. 

@Ashish Acharya - of course you're right on the second home distinction.

I assumed it was done as payment for merchant services, but this would be a good distinction to make as well.

I haven't really made my distinction of SFH or MFH.

I reviewed the deal and pulled the trigger NO MARKETING to the general public I think that is the distinction and where the states department of real estate has heartburn..

Or, you can form an entity such as an LLC which would be on the title - within the LLC, you can each have a % ownership but you can also identify a % profit split, which may be different than % ownership.The distinctions between ownership and profit/loss distributions are important. 

@Katherine S.I understand what you're getting at, and I agree about government rules.One distinction that might help is that you are able to grow your retirement account which is for your benefit later on.