@Mohamed Nagoor , There is no capital gain treatment for flipping the house.

If the rental is treated as a separate property from the primary residence, would the tax treatment be different than previously described?

Is it common to see cess pools out there still and are there any companies that have alternative treatment units in the area?

For example, the previous homeowner’s seller disclosure checked yes there has been “Previous Roof Repairs” and “Previous treatment for termites or WDI”.

For example, the previous homeowner’s seller disclosure checked yes there has been “Previous Roof Repairs” and “Previous treatment for termites or WDI”.

@Bruce RunnSounds like Jordan may have waited long enough to get capital gains treatment but it would have helped a little if he did a partial 1031 into one of the new properties.

I'm neither a lawyer nor an accountant, but I recommend Googling "closely held corporation" and then asking your tax accountant how, if any, the proposed idea might impact your overall tax situation (https://www.irs.gov/faqs/small-business-self-employed-other-business/entities/entities-5: A closely held corporation is subject to additional limitations in the tax treatment of items such as passive activity losses, at-risk rules, and compensation paid to corporate officers.).I've read that when two closely held corporations owned by the same small group of shareholders do business with each other, the IRS sees a red flag because some people try using this approach to evade taxes.From my readings of personal finance articles, this additional scrutiny is based on whether there is an "arms length" between the two parties in a transaction. 

I also LOVE @Jenessa NeSmith’s royal treatment!

Some experience is preferable in negotiating.If there is any way you can owner-occupy the house whilst renting out the rooms to the students, you will get a more favorable treatment from the bank in terms of loan and interest rates.

@Ouman You If the property was her primary residence, yes, it will not qualify for 1031 exchange treatment.