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.

These systems also generally include a waste treatment facility which will clean out all the water you use, as well as clean out rain water which is collected.

Worse is the Fannie Mae executive that Obama just fired for his favored treatment as a Mozillo "friend".

On multi-family properties, you usually avoid a lot of headaches by just having quarterly treatments routinely.

It also says that all kitchens, floor coverings, window treatments, HVACs and light fittings (for example) must be replaced no earlier than half-way through the lease, and the property repainted upon vacation.

Overall the general treatment is the same; however, if you have to pay income tax on the income generated then you will need to fill out Form 1116 Foreign Tax Credit.You will also be using a longer depreciation method.

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