Please DM me if you don't want to post this publicly.  

I know the 2 str units would represent a nuance to most banks but I've seen a few programs that are okay with it even on 5 + MF.  

@Les Jean-Pierre Had Section 8 tenants and got a bunch of energy upgrades through a state program.

I use to rent to Section 8 in Philly but the program started to be too much of a headache. 

Your question has been debated between BP tax experts both privately and publicly, for example here: https://www.biggerpockets.com/forums/51/topics/819991-expens...And we ended up where we started: no consensus and no clarity.There have also been court decisions that support my interpretation, even though I personally find these court decisions debatable.

I'm considering partnering with a non-profit that would manage the sober-living program; with me just providing the house passively for rent on a per bed basis. 

Not all data is public? 

My friend spent $81,000 on marketing and told me he could not trace one sale to a lead generated by the program and that the program generated almost no leads anyway.  

Anyway back to regularly scheduled program !!   

They batch the deposits together and you have to go deep into the program to determine which tenant made the payment, that was deposited into your account.