The Type II still feels like a gray area, unless I'm reading it incorrectly.

Excuse me if I post this under the incorrect category.I’ll try to keep this short.

But that was the never the point - it was just a quirk for about 5 minutes when interest rates were super low.So if your mortgage payment net of rent is equal to or less than what you would pay renting, it's a better choice.With numbers - say you could A. rent for $2000, or B. have a $3000 mortgage, and collect $1200 in rent.

@Hong Zhu most likely schedule E, although we routinely review returns that are incorrect.

Paula,Unfortunately, Jason is incorrect; The "Delayed Financing" loan will not work with a self-directed IRA.

@Costin I.Your understanding is incorrect.

It looks that you did not complete it correctly and this entire mess began with this incorrectly completed form...  

They will have their quirks and you might uncover things as you get into it so be conservative

From my personal experience I’ve had most success acquiring MLS properties that have underlying characteristics such as favorable zoning, incorrectly listed square footage or other attributes that are either incorrectly represented or not effectively marketed.

Some houses have quirks that make them unsafe for housemates.