(lose a job, file bankruptcy...etc.) 

You also subject yourself to possible discharge of loan if the borrower files a bankruptcy.

I know I would need to establish an association with declaration, condo docs and such, get city approval and have a surveyor involved. 

Hey @YuYing ChenGlad to see you getting back to it and making a "public" declaration for accountability.

When you put a rental property in service, you declare depreciable basis which in an owner-occupied duplex is only a portion of the total value.

This includes declaring rental income received and deducting applicable expenses such as maintenance, property taxes, and mortgage interest related to the rented portion.Once Cousin B acquires 50% ownership, they will begin reporting 50% of the rental income and associated expenses for the portion they now co-own.

Now my parents are still married but imagine if you can that one day my father comes home and declares after 40 years of marriage, that he fell in love with his secretary or one of his buddy's at work ( lol, I just had a image of my dad being gay ..) it has happened to 100's of thousands of women.

In most cases, this quick inspection is also our final inspection and we can declare the property ready to rent or create a punch list for turnover.

The thing is, she has until the 2nd of July to pay her back taxes, and if she is unable to pay by July 2nd, she will have to file for tax bankruptcy.

However, they include "bad boy" carve-outs that trigger full recourse if the borrower commits certain bad acts like fraud or voluntary bankruptcy filing.Abandonment may constitute default: If the GP abandons or surrenders control of the property during foreclosure, it could be considered an unpermitted transfer that violates the loan agreement and triggers the guarantor's full recourse liability for the unpaid loan balance.