@Angelo Llamas If your cousin rents out the property, it becomes a rental once it's "placed in service," meaning available for rent, and he must report rental income and expenses on Schedule E.

Quote from @Rebecca E.: @Katie MillerI came here because I just had my yearly with my new accountant.

E Equity, how much of the home will you own on day one.  

I did a quick check in SLC and while I couldn't find a duplex at that price point and what I did find was pretty far out from downtown, but would something like this: https://www.realtor.com/realestateandhomes-detail/141-E-Nort... be of general interest?

For Conventional, you can only use 75% of the gross rent until you have Sched E history for the rental for a net rental income analysis. 

No such requirement for improving rental properties and deducting interest on Schedule E. 

If you provide any kind of substantial services like catering, car service, etc you will change you tax situation and no longer can file under Schedule E.

Quote from @Colin E O'Connell: The BP meetup in Wilmington is tomorrow 1/7 at 5:00 at Mad Mole Brewing.

Theres so many problems, this is a team deal scenario and one needs rules;  never take a contract less then 7 days prior to the auction, and NEVER NEVER N E V E R close allowing the seller to stay in the house after closing. 

Once you think there is no law pertaining to the activity then the work begins this is a belly to belly business your not going to do this on E mail and text messaging .. you will need to be able to sit down with these folks or it will never happen.