The more affordable price points, combined with a steady rental market, provide some peace of mind.

If they are the one providing most of the cash, they might not want to carry that liability, but you've already negotiated with your partners on this and then the bank isn't cool with it, you could be in a pickle.

It's not illegal provided you're dislosing it to all parties and not trying to actively hid it.

Then there’s fraud or misrepresentation, where borrowers inflate project values or provide false documentation.

Lastly, Rochester, the most affordable of the four, provides great opportunities for investors looking for higher cap rates (8-10%) in multifamily properties.

Also, did they provide you those terms off the bat or after explaining your project?

I am a realtor and wholesaler, and I get some buyers looking for owner financing, some sellers need/prefer getting cashed out and there are some lenders I work with who can provide the financing however they run out of funds sometimes.

Simply have the tenants sign the new lease AND have them provide you with the additional $100 BEFORE you sign the lease yourself.

Real estate has always been in the back of my mind as a way to increase our wealth and provide for our family.

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.