For the basement, you need to check with a property manager and a General Contractor to ensure its legal to rent and has everything it needs to be legally rented.

I like to check furnished finder for demand in my exact area.

In Metro Detroit area, police will not remove these types of occupants (they are afraid of scamming landlord having police remove legal tenants), calling them a "civil matter" forcing landlord to start court eviction process. thats a good question Drew.. but I bet if the police are aloud just a little bit of fact checking and do police work they can determine the fraud very quickly.. 

@Harsh Poshti  You do need to check with the local zoning office. 

Or did you run some numbers or have some other set of data you're using to come to the conclusion that Westmoreland County is, in fact, an area conducive to being profitable in house hacking?

Quote from @Rud Sev: Hi Michael,Thank you, I will message my CPA asking for a more detailed explanation.I've been inquisitive with my CPA, but unless I ask question I do not get explanation (and unfortunately not a walk-through), although I've shown interest understanding this further and further.I'll try to reformulate my question more clearer (and with more data) - the problem that I have and will have is figuring out if my questions and confusion are due to a lack of understanding on my part, or my CPA is truly making mistakes.Regarding carry back, thank you for this info.

Details here: https://www.biggerpockets.com/forums/521/topics/1214849-dmv-...I recommend checking them all out initially, I bet you'll have a lot of fun networking!

To CORRECTLY do Build-4-Rent there is never HOPE of appreciation, there is CERTAINTY, mathematical data and insight driven CERTAINTY, knowledge of the appreciation to come. 

Be sure to check out the free tools BP provides to help analyze deals you may have and also market insights.

Check out BP's tab:Find a Hard Money Lender - Best Hard Money Lenders Near Me (biggerpockets.com)