Quote from @Alecia Loveless: @Jonathan Bombaci I think a good lawyer that has passed the bar to practice in two states is going to be more expensive than $200,000.

I will not comment as to the tax laws and underlying rules - that is a discussion you can have with your tax advisor who presumably you are paying to help you.What I will do is provide practical and business guidance on tracking time.Firstly, there are apps available that can assist with time tracking where you can specifically detail your time, who you met with, etc.

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

A person who has spent his 2000 to 4000 minimum CPA practice hours doing foreign currency conversions at Deloitte for a Belgian energy company may not know the first thing about real estate or anything else.

And of course it goes without saying that any deal of this kind would involve an experienced real estate attorney--especially one that is "great" 😉Thank you for the insight, which is both practical and encouraging!

Actually I think the basement room was so his band could practice or something like that.

Similarly to what Mark Cruse stated above, provide dignified housing, respect your tenants, and either have a good PM or make sure you are updated on the regulations and best practices for placing tenants.  

Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice.

It is common practice for mortgage companies to later sell the already funded loan to a 3rd party like a hedge fund or a bank after the fact.

Best practice is to keep one or two payments in reserve from the buyers down payment for such instances.