Yeah I am a huge proponent of free markets and private property rights.

That’s why the successful wholesalers and flippers I know spend $10,000 and more MONTHLY on marketing.  2.

Or in low volume areas, a public/private partnership with existing child care centers. 

One big one is that scaling the lease option sale to a homeowner will attract both public regulatory scrutiny and private litigation, perhaps class action, once it reaches a certain threshold.  

We don’t use the 70% rule for anything except to decide if we’re going to look at the deal… and even then we just want to see if it’s close before we spend time running numbers.

You would need to track everything you spend on the business unit and write those off and anything shared would be times 50%.

That is good but there are fewer folks looking to spend over $1000 a night on a place.This all looks like a problem waiting to happen IMHO.

Private mortgage insurance i believe is not charged on va loans.  

Our privately owned and centrally controlled monetary system, known as the Federal Reserve, and the legality of Fractional Reserve Banking is on a crash course for a battle between Freedom (Property Owners) and Royalty (the banks). 

Your question has been debated between BP tax experts both privately and publicly, for example here: https://www.biggerpockets.com/forums/51/topics/819991-expens...And we ended up where we started: no consensus and no clarity.There have also been court decisions that support my interpretation, even though I personally find these court decisions debatable.