You would have ongoing filing requirements with the State and would need to keep business records and documentation.

The input you are receiving from this wholesaler is garbage. 

As I'm looking over their explanation I notice that I am being charged 8% of the rent received from CMHA. 8% from the rent the tenant pays and another 8% of the water bill which the tenant pays. 

If you see someone violating the rules, create a post with "@moderators" and we will receive a notification and respond.Again, welcome to BiggerPockets and happy investing!

Make sure you receive PRINCIPAL plus interest each month (loan amortization) so that you  will receive $3226.72 each month for 36 months.  

I agree with y'all.The parents need to have will or any kind of trust document before they die, if they both died and have no documents, the house will go to probate.Having trust will help to avoid probate.  

@Victor YangWhy are you not reaching out to a NC real estate attorney to draw up a document that spells out the agreement that you are looking to do with the tenant?

- If so, 1031 into something bigger and easier to manage and then when you pass, the inheritor receives your property(s) at a stepped up basis - subject to Inheritance Tax limits.Otherwise, sell one every 1-5 years when you need the cash, so you can plan expenses to offset capital gains.

There's other items such as this where it may be helpful to talk to a CPA/EA for a little tax planning, especially since you'll likely get caught up in the passive activity loss limitations if taking bonus on a single rental property as I often see.It's also useful to mention that even if you do the cost seg study (I'm assuming you're doing one to be talking about this), you'll still benefit from accelerated depreciation in the form of shorter useful lives on the assets where you received bonus from.

You will receive the security deposit in Checking but then transfer it to Savings.