Sucks that my wages are below market value fir an experienced auditor, but a good benefit package helps.

I was constantly bombarded with people left and right trying to rent my last two places, and honestly after sifting through less than 10 applicants I've been able to place two families with zero issues (knock on wood) so far.Using the City Auditor tool it seems the owner has many more properties throughout and is liquidating everything. 

You can search the county auditor site and get an idea of whether or not the addition is permitted.

My county has a webpage for the auditor that you can search.

Whats your thought.In the event of an audit, a talented auditor would follow the paper trail and would be able to easily see that you were not entitled to claim this as mortgage interest.  

Fourteen years experience as accountant/auditor.  

I can send you addresses if you'd like (or auditor site of course). 

Any IRS auditor will question the monthly draws from your bank account and ask you why you're paying your parents back after they "gifted" you their property.

If you are audited and the seller did not privide you with a F1098 for mortgage interest paid, you need to provide to the auditor the HUD statement or other contract to purchase and the loan agreement between you and the seller, and proof of payment of mortgage from cancelled checks, or if electronic payments, your bank statements.  

I wanted to see if that would be good first steps and then go from there.The best way to get some cheap leads is to hit up the county auditor or treasurer for a tax delinquent property list.