The first issue that jumped out at me is that you have to have the intent to hold for investment in order to qualify for 1031 exchange treatment.

There are some really great looking concrete treatments now-a-days as well.

The seller did a termite treatment and we didn't see any visible signs of damage when we initially looked at the house and everyone said termites are very common.

It will show wear faster than just about any other floor treatment except really cheap carpet.If you go with the $3 per square foot you haven't spent much on it.

I meet with pest control company for a bedbug treatment at another property.

If the LLC pays for the medical treatment, or if a lawsuit is filed and settled, can the payment be deductible since it came out of an LLC?

At some point it may make sense for your LLC to elect S-corp treatment (rather than straight pass-through) and pay salaries, in order to bypass some self employment taxes.

@Dion Depaoli - well we would hit them for their rent obligation where they are living however my scenario to my head UW was assuming Jason is living rent free with a relative or parents whether that is true or not its just a hypothetical.With respect to your scenario above if a borrower is to purchase a NOO property we're able to use 75% of gross rents to "offset," the debt service PITIA payment.If the income using this formula is positive its added to income if the net is negative its considered a monthly obligation and added as a liability to qualify for in the DTI.Fannie Selling guide is public you can find it on page 347 of 1319 where it talks about the treatment of income or loss when dealing with rental property.

(Tax elections and treatment, however, are more complicated and even I consult with an accountant on these.)I think from a big picture perspective, it's difficult to find a really "good" RE attorney for small SFR investing.

So, if you have a duplex where each unit has exactly the same square footage, and you live in one and rent the other out, then 50% would qualify for the 121 Exclusion and 50% would qualify for 1031 Exchange treatment.