There is no specific timeframe mandated by the IRS, but it's generally recommended to rent it out for a significant period to demonstrate its investment intent.

This probably varies, by city or state, but in the end the residents would have to demonstrate that the flooding was due to negligence by the city, as opposed to an act of nature that could not be prepared for or predicted in advance. 

However, even if my long-term rental in the basement follows all these rules, supposedly I can still get flagged if a neighbor/the tenant/whoever lodges a complaint and then I cannot demonstrate that the tenant is simply my roommate who is allowed access to the rest of the house.

@Benjamin Riehle KC definitely is full of opportunity and is demonstrating amazing growth!

Simply asking these questions demonstrates that you might not have a complete understanding of how these transactions work.You, as a buyer, do not ever give a real estate agent money.You will be wiring money to escrow.

But I'm throwing them out there to demonstrate the reasons why its not as cut and dried as some people think.They may assume that a house that is negative cash flow has to be sold no matter what even if you have to come out of pocket 20k or 30k to do it. 

As this thread has, I hope for all those reading it, demonstrated, there is no limit for me, in this case, since I'm buying a new primary, owner occupied property.I'd be happy to have the referral for the new construction fourplexes that will be done in about six (6) months as long as they can write business in AZ and UT.

The key is to maintain a clear paper trail that demonstrates the flow of income and expenses.

Are there other comps nearby that are similar in size that could be used to demonstrate proof of concept? 

To me that is a blatant disregard of his responsibility, and demonstrates how he would treat other 'formalities' like obeying a lease.