The project was built in 2010 and is pretty much classified as Class A (stainless steel appliances, wood floors, granite countertops, etc.).

RESPA typically doean't apply to commercial transactions so there can be line items for consulting services, advisors,etc. not classified as commissions but other.The lender has to be okay with it on financed deals and how proceeds are dispersed.No legal advice given.

And to use such potential rental income the lender has to classify the home as investment, which makes the minimum down become 15%.

My two cents here are classifying those as repairs as much as possible.

Should I classify this home as a rental or second home?

When you move in, don't forget to join Nextdoor to get latest updates (classifieds, community outreach, including suspicious activities in the area).  

Hello Mindy Jenseni have a question for you . i learnt from one of the investors and lenders i listened too that , while analyzing my deal , i have to study the area where i am buying my deal if it is described as a rental area or owning area more , because if it is not classified wright and i have a different exit strategy than the convenient one for the deal , that might lead to not good results , or loss alsoso how to classify the area the best way , to make sure you having a good dealthankssincerelyEhab T

I am at that point right now and using craigslist and ebay classifieds for some of it, but in order to find the better deals you will have to deal with lists, and such, or you can always try probate but thats not always free either.

I put the number of members as 2 but the government website is saying that we will be classified as a partnership.

Saves time, money, less liability, less stress, chances of getting pie on your face for failing at what you tried to do and a better way to stay out of trouble....Bill, I've learned this much so far but I've never seen an option for sale on a bandit sign or classified ad or anywhere.