@Clark Harbaugh, Given the favorable tax rulings over the last few years (in particular revolving around trusts and their equaling a beneficial interest in the underlining propery) the IRS has actually been much more lenient (or at least silent) on these issues. 

That's great that he travels so much but ask him to provide where he rented and where he slept during that time. 

Please note the information provided below is a layman's definition designed to provide a basic understanding for the general audience.

Keep the text from the “reliable” tenant that shows they provided the addresses you sent the letters to. 

Last piece of advice is to surround yourself with quality service providers (real estate brokers, lenders, accountants, attorneys, PM's, Contractors, Insurance Brokers)., They will be instrumental to your business. 

If you have access to someone who is ready to trust you with their asset, do right by the owner and go for it!

I always advise to run a business for 3-6 months without an entity to see if it something you are making money in and something you want to continue doing.Once you have 3-6 months of activity, you have more information to provide to an accountant regarding income so he can provide suggestions on entity type.Best of luck

I have a capital gain taxes question:if I sell my home for 510k and provide the seller 10k seller credit towards escrow costs, would I be paying capital gains taxes in California for that additional 10k?

Pay attention to realtors who are wanting to provide value and provide resources and make time for your inquiries without ever expecting anything from you in return.

Can you provide references?