The house is also very old and there is no records of original blueprints, so how will we know which are the rooms that were added?

You want to say you're taking your original capital or basis out. 

I am originally from Scandinavia and we have quite a different life and culture there.

What happens to original security deposit from original 12mo lease?

After a year, my lawyer negotiated a settlement offer for $17,000 which is 40% lower than the original price. 

It is also 4 blocks from a local (small-ish) hospital that employs about 10 to 12 travel nurses at a time.The original strategy when purchasing the home was to purchase it as an MTR or STR.

OR should I keep my original plan and section8 it. 

Originally posted by @Anthony Chara:One extra step to add to all of the good comments above @Doug Webb, make sure you have 1 additional person in your LLC.

Everybody involved in the original transaction and some who weren't were named.

Original price was around $270,000 but right now I would say it's worth around $390,000 for some rough numbers.