Just be sure to clarify that she isn’t a leaseholder but is authorized to reside in the unit.If you’re concerned about liability or want more peace of mind, you could ask the primary applicant for additional security, such as a higher deposit, depending on what’s allowed under Colorado law. 

Need I be concerned with UBTI?

The other thing that concerns me is you mention that you are both high income earners but that you are “trying” to save an emergency fund.

I just don't want to buy that close to the water due to flooding concerns.  

It's not enough money to be concerning yourself with better ways to re-invest the funds.

I understand if you want to sell 1 of the lots, but I'm not sure about your concern about paying off the debt so that you own it free and clear. 

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

Tom so you wouldn't be as concerned about that element?

And many of my clients are taking on the BRRRR method. 

I wasn’t trying to be long winded, with too much detail, in my initial post but I actually did this method on a fix and flip.