The utilities, however, are all on one meter inclusive of the house and the basement unit.

So I'm going to provide an alternative conclusion than Kislay, and I may be wrong so please correct me if so.A transfer from the HSA account to your bank account may be considered a distribution from an HSA.You would know for sure if you got a 1099-SA.To the extent not used for qualified medical, it could be taxable.Honestly most CPAs just set the distribution equal to medical on the 8889.Sec 223(f)Tax treatment of distributions(1)Amounts used for qualified medical expensesAny amount paid or distributed out of a health savings account which is used exclusively to pay qualified medical expenses of any account beneficiary shall not be includible in gross income.(2)Inclusion of amounts not used for qualified medical expensesAny amount paid or distributed out of a health savings account which is not used exclusively to pay the qualified medical expenses of the account beneficiary shall be included in the gross income of such beneficiary.

However in my post above I was not referring to the leveraged percentage or to the inclusion of rental income for D/I purposes but rather to the self-sufficiency rule, which is not something that a lot of newbie investors know about when looking for a 3- or 4-unit to purchase using FHA financing, hence the reason I am quick to point it out.

all inclusive deed of trust "  give that one a read..the risk comes if your the one with the underlying mortgage and your buyer defaults.. the buyer is in title and your need to foreclose them off... this takes time and money.you need to keep paying on the underlying mortgage other wise your credit is shot or you could lose your 90k you put down.for VERY cashed up investors this works.. for those trying to do this with minimal cash.. it can back fire big time.there was a group of investors who got this model in Oregon through a guru pitch deal.. did about 30 of them.. within 18 months half had gone bad and they had no way to cure.. i stepped in and cured a good number of them but boy were they in hot water.. in this case it was owner finance from the original seller  ..

If, after examining expected P&L -- inclusive of taxes, Insurance, maintenance and debt service -- cash flow is negative... an experienced investor typically will adjust maximim allowable acquisition price to generate his/her minimum acceptable cash/cash... based on an achievable market rent with modest capital improvement.Consider sourcing deals from local wholesalers in your area... i.e. local REA, HomeVestors etc. are a good place to start. :-)

Parts of this may be out of date, as ordinances change fairly often in my experience:* No rent control: Montclair, Secaucus, Kearny, Garfield, Carlstadt, Wood-Ridge* No rent control for investment properties upto 4-units inclusive: Jersey City, Bayonne, Bloomfield (upto 5 units)* Vacancy decontrol (very high level, alphabetic): Bayonne, Belleville, Cliffside Park, Clifton, East Rutherford, Edgewater, Elmwood Park, Fairview, Hackensack, Hoboken, Leonia, Lyndhurst, North Arlington, Nutley, Passaic, Ridgefield ParkP.S.

Their analysis tools look really great but of course come at a price - especially for the more inclusive versions with accounting spreadsheets/etc.Any thoughts on the best way to go? 

If your uncle has financing, he can still do a all inclusive trust deed which is sorta like a mortgage that wraps around his mortgage.

(In CA we have something that is called an all-inclusive deed-of-trust that works for this.)

This isn't inclusive but should give you a good start.