@Chris Hayes it will be property dependent, but often times yes you can get an FHA or other government loan for them.

Is there a government inspection process of properties to ensure that new rentals are safe/ suitable to rent?   

Federal Capital gains tax is 20%.

The only contact info listed to ask the question is an email address which I emailed, but the government has not responded.

Only you know these facts.One item if you file an amended 2014 you are putting the government potentially at a disadvantage since the normal 3 yr statute of limitations could be expiring soon.

There is a big difference between the escrow/trust accounts of such an entity and holding your proceeds in an actual FDIC insured segregated account with a Federal Reserve chartered bank.  

Luis, as you know everything is a pain in the *** in PR, and the government has their hand out at every turn. i think some of the issues are that rents are not that high, and finding qualified people are difficult right now, especially when people are not working. it sucks, but its the facts.unfortunately the properties don't appreciate well down there, so you would be buying for a long term cash flow play. 

The rental market should be left alone, not more government control.

I don't have a business account or federal tax ID for the business since it has just been me thus far.Can I just 1099 him at the end of the year for what I have paid him?

A fundamental component of being a successful real estate wholesaler is understanding the laws governing the conduct of real estate agents and the laws that govern your conduct as an unlicensed individual.Do your homework.