In this approach, the taxpayer calculated that the cost to construct a new building (say, $300 per square foot at 2,000 square feet, totaling $600,000) should be allocated to building and the remaining balance of the acquisition should be allocated to land.Rule of thumb method: Some taxpayers use a predetermined percentage (such as 80/20 percent, 70/30 percent, etc.) for improvements and land.

It sounds like you starting on a much stronger footing than many syndicators were when they got started.  

It’s crucial to start off on the right foot with your taxes.

Some investors keep a foot in both worlds, using local banks for certain things (like larger loans) and online banks for everyday transactions.

The main house has a pool, so it adds complexity because of the increased water bill.I have though of two options, one is to make the main house foot the bill, but that will surely cause me issues down the line when they start questioning the use of water and electricity of the other tenants.The second option I thought of is to include all utilities also for the main house, so me footing the entire bill.

The seller is basically relieved of their debt associated with the property and may receive moving compensation and can move on with their lives without the hassle of other hidden lien/financial debt that could possibly come back to the seller if it wasn’t negotiated upfront.  

These forums are a great place to learn and meet people, whether you're just starting out or you're a seasoned investor.House-hacking your residence is a great way to get your foot in the door of investing.

I wouldn't touch arbitrage with a 10 foot pole unless it was a super unique property and situation with an owner where I saw some longevity and buy in from them. 

Your first partnership should be on equal footing.

Also assumptions on cost if you pick and they buy A $10 a square foot flooring when they budgeted $5, big difference.