I think it's important to make the distinction between underwriting and performance. 

@Adam Anderson  While there is a very distinct possibility that that could be the case, what I am looking at is still in the very, very tentative stages, and I'm not to the point where I would have any communication with the tenants yet.

@Doug McLeod Point taken about hobby-income vs tax-income, but the phrasing of your point:"You can call 2 deals in one year a hobby" Didn't do a great job of making that distinction.

Agreed, I don't see an accounting issue.But if your employee loses his job, will it be clear that the tenant relationship is distinct and separate.

I was making the distinction between "single family residence" (SFR), the definition of which is 1-4 units, and "commercial" which is 5+ units (in a single building), not the purpose for which the buildings are used (commercial, as in rentals).

There is nothing wrong with that, but I want to understand a key distinction.

There in lies the key and the distinction that Bill points to as well.  

As of the 2014 taxation year, New Brunswick has the distinction of the highest combined tax rate of 46.84% on income amounts over 138.6K.BTW:  The Canadian Dollar has only slid in the past 6-8 months ... in 2013 it was running on par or greater than the USD.... now, back to Thomas' topic ...

"As is" generally is just a distinction that the seller will not Automatically pay for necessary repairs to meet FHA/conventional financing standards.

All of a sudden, that cash flow they’ve created is now needed to support new spending habits—and its not helping grow their business or portfolio.We set up new accounts at a separate bank from our personal accounts to keep a clear distinction between the two, and eliminate the temptation of spending money from the rentals.