The general idea is that you must acquire an interest in real property you do not already own, and since you already own the subject real property you want to build on, the transaction must be structured so that you are creating an interest in real property you do not already own (in fact, it does not yet exist).

Last, I would like to also say that if a company WERE to sue a BiggerPockets member for defamation in a forum thread, that I would be very interested in covering the situation as a news story.

The biggest thing with this is if something major happens are you legally covered if the unit is illegally rented. 

The buyer agreed to cover the cost of the new appraisal, which came in significantly above the purchase price.

Have you called the housing authority that covers this property to confirm the max rent based on the # of beds?

We have been told that fha will not cover this since there’s are two residences on the property.

What is the cost, and what does it cover?

If you can rent it for enough to cover the principal, interest, taxes and insurance and still put money in your pocket, plus cash flow on the property you're purchasing, that would be ideal.

I think I’ve covered my bases, but I’d love to connect with others working on similar models or interested in this niche.Looking forward to hearing your thoughts!

[I think someone else provided an example of this case earlier]-Now provided you do qualify for purchasing a house (4 units or less), you will have no problem qualifying for a mortgage with a Schedule 1 bank as long as you provide the down payment (35% minimum of purchase price) and confirm proof of fund and the source of it- On the proof and source of funds, the banks would want to see an income enough to cover the mortgage payment and other expenses. and in some cases, they would want to make sure they know how you're going to cover your expenses (housing, heating, etc..) where you live.This is usually where it gets annoying for some folks but if you can satisfy this, you should be able to qualify for a mortgage just likely any Canadian tax resident, albeit you will pay a little more in terms of interest rate, etc.