It might help you avoid penalties if the IRS goes after you later.You can claim the labor expenses even without 1099s, but you will technically be in non-compliance.

At the end of the day you're only going to be as successful as that team allows you to be so I would definitely advise doing a deep dive and  visiting, if possible, who you'd be investing with and where before pulling the trigger. 

Effective  12/1/2024 @ 12:01a the Louisville rental registry requires the 16 page Lead Hazard Evaluation form in addition to the Affidavit of Compliance.

The trustee, borrower or bank can ensure you get your hand slapped hard for approaching the circumstance as a work-out or foreclosure fix it guy without a license or being an attorney.Let's say that we can approach the owner and be in compliance, which you can.You will not purchase a note as an individual investor from a bank that has started foreclosure by making an offer like that.You get a request from the borrower for the bank to sell the note in lieu of payoff as demanded.

@Hemal Adani.Did you end up pulling the trigger? 

It sounds like you are not in compliance with those laws if you don't live nearby.

If you were not in compliance with the sprinklers AND notified, the insurance co could deny your or anyone else's claim.

If it will be owner-occupied, there are a number of compliance issues to ensure you address (Dodd-Frank, etc). 

By utilizing one provider for both services, both can be aligned, customized to your portfolio’s needs which should achieve a better outcome overall.Real estate investing can be very complex and navigating taxes, compliance and insurance can be overwhelming and complex, deterring some people from expanding their portfolio or from investing at all.

Consulting with a tax professional is advised to ensure compliance and proper handling of deadlines.This post does not create a CPA-Client relationship.