Personally, I wouldn't open up a home that isn't in good repair, from a liability standpoint if nothing else.

It separates your personal assets from your business, providing a safeguard if any legal issues arise related to tenants or the property.

The primary residence exclusion is $250k per person on title.

You must report rental income on Schedule E and can deduct rental expenses like repairs, maintenance, property taxes, mortgage interest (allocated between personal and rental use), and depreciation for the rented portion.

The person had something of an accent.

Hard money lenders focus more on the property’s value rather than your personal debt to income ratio (which traditional banks use) allowing for quicker approval and funding.

I've know him personally for years, had the opportunity to consult with him on both sides of the business and have to say he's the real deal. 

The first is having a personal portfolio of 5 passive rental properties, not including my residence.

Instead of debates and personal opinion, look for proof https://www.ladbs.org/docs/default-source/forms/plan-check-2017/single-family-dwelling-duplex-plan-review-list.pdf under G (Interior Env) which defines the minimum requirement of a habitable room (aka bedroom or bathroom).

Personal money How did you add value to the deal?