Note that using a HML for purchase and rehab on the front end changes things completely, as the rate/term refi just replaces the HML loan (unless you get net cash out, then you still have to look forward to what that new cash is used for).Maybe some of the members that deal with IRS auditors on a daily basis can add their $.02.

So my city auditor's website is reporting the first home under my name today as "non-owner occupant".

Do you have the business basics covered, aka, attorney, accountant, and auditor?

We don't have the final numbers back from our auditor but he estimated a near 50% improvement from the original house!

It's just as beneficial for them, as it is for me to draw up - we're both auditors by trade, so mitigating/reducing risk as well as proper documentation is what we live on. haha. 

When I asked the property manager about this, they said they had to use the square footage listed on the county auditor ARIES site.

The sheriff, auditor, and treasurer can not tell who is paying but confirm that the deceased still owns the property.

Once the auditor reset my property value to match what I paid for it, my taxes jumped as expected. 

To be clear, a “concession” is some dollar amount that the seller pays which would normally be paid by the buyer....foregoing your commission doesn’t fit into this.What you can propose, and the listing broker needs to be on board but no reason for them not to be, is to Reduce The Price by the amount of your commission with the listing broker agreeing to reduce their fee to the seller by the same amount.If you’re looking to not do that and have the seller pay some of your closing cost Instead (a concession) then you still need the agreement , mentioned above with the listing broker, and then the seller pays some of your closing cost instead of reducing the price.If the IRS happen to ever look at this transaction in detail through an audit or anything, they might figure out the switcharoo and disallow it, but I have no idea. 

Back taxes are piling up, auditors office had a note that Owner was deceased and property was in bank foreclosure so they have not taken action, treasurers office said there is no mortgage and they have not received anything from the auditors office.