The terms were much better through the credit union, 1% lower interest rate, 30 year term, 75% LTV. the advantage to the federal loans is the ability to take out non-recourse debt, but for us the other perks outweighed that value.

It is a daily challenge to navigate the local, county, state and federal governments; local Code Enforcement, Housing Authorities, Department of Real Estate, Franchise Tax Board, Secretary of State, IRS, Dept. of Fair Housing & Employment, HUD...to name a few. 

@Robert BladeIn general, lenders want to see monthly housing debt of no more than 28%-33% of your income and total debt of no more than 38% of your income.The rental income should be ~80% supposedly your current rental income to account for vacancy etc, If you are government employees guarantee for perpetual income want to work another 10-15 years you can be a bit aggressive on total debt. 

As a matter of fact that what the power of deferred taxes is - the power to use the governments money to grow from one to several - Kudos to you!!!

Scott shall not be considered active under the following circumstances: unemployed while seeking gainful employment, on disability from full time employment, retired from government employment, or other circumstances out of control and atypical to choosing to pursue his housing business endeavors as his sole source of primary income. 1.Should Scott choose to “actively” engage in housing as his source of employment as defined above, Scott agrees to give 25% (twenty five percent) of his net profits accrued from his active efforts during the period of marriage to wife in the case of a divorce.2.Payment of such percentage of funds shall be payable over 120 equal monthly payments, or equivalent to no greater than 10% of Scott’s New York State Adjusted Gross Income, verified annually with payments adjusted the 1st of November each year, whichever is less, to ensure no undue hardship to Scott or the business will be endured.

That would be correct if OP's father has made or intends to make an S election for the LLC.Since OP did not specify tax status of the SMLLC, we're left to assume no alternate election was made, and the LLC carries the default tax status: 'Disregarded Entity'.A DRE should not be issuing W-2s or 1099s to its owner as it's effectively dissolved for federal income tax purposes and there's no distinction between the owner and the LLC.

They say its a federal standard..

@Priyanka K.When investigating new markets I look for things like population growth (upward over the last 10 years)Job growth 1% or greaterUnemployment =< national averageper cap income 20KHousehold income 3 times annual rentnumber of households (in comparison to other markets) Favorable government policies (is the local government looking to attract business) those numbers will give me a sense of the macro market.

The main issue I think you are going to have if you move forward with this property is the only insurer that will take a property that has had a recent loss is the (National Flood Insurance Program) NFIP or government program (What is the NFIP?). 

Of course, you need to first check with the rules and laws that govern your responsibilities as a landlord.