I'm house hacking with the other units as vacation rentals, what proof does the IRS need for things like beer, wine, toilet paper we would be providing a guest that it was for them and not personal? 

I want to add a macerating toilet and a shower.

This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

Maybe something more suitable would be self storage or MH park where you do not even have to deal with tenants and toilets and get a higher ROI.

Well i guess whther i have kids or not nobody wants to share a lot with crazy ones who intend to squat or destroy the property. 

We will be putting $3,700 down, and borrowing $15,000 over 4 years at 5%, which is 4x the interest rate our relatives make on their savings in a bank CD, making both them and us very happy with the terms of the transaction.After closing, we anticipate ~$4000 in rehab costs to bring this very tired unit up to date, which will include refinishing the hardwood floors, complete repainting, new kitchen flooring, new counter top, new appliances, new lights, blinds, fans, toilet, etc.  

It's going to be older/neglected real estate, so the sellers will generally go along with it if it helps get the house sold.Example:Identified a below-grade un-permitted basement bathroom with a jenky pump lifting the toilet waist up to ground level and into the sewer system that was all sorts of a hot mess, no way anything about that bathroom is up to code. 

Worse, some may try to scam you into renting to them and then squat while you waste time trying to evict them.

You don't need a permit to change a leaky faucet or running toilet.