States may classify loans with more emphasis on the type of collateral, where residential property is classified as non-commercial.

This is a fact that we all have to deal with, however I wouldn't put too much emphasis on it in regards to your business model.

[emphasis added.]This is threatening criminal prosecution for a civil contract matter, when there wasn't even a contract in place! 

I am partnering with a professional team focused on navigating foreclosures and short sales with an emphasis on preserving people's credit.  

@Max James What my husband, @Darrin Carey has forgotten about is McSwain Pro - emphasis on PRO, because their retail locations will charge you an arm and a leg.

(my emphasis)http://www.com.ohio.gov/Documents/real_newsletterSpring2014.pdfSecond, I earlier detailed the disciplinary actions here: http://lawcarson.com/2014/08/more-fines-for-unlicensed-activity-in-ohio/

In an exchange, the IRC clearly places the emphasis on your INTENT to hold for rental or investment purposes.

I have a college graduation in business with an emphasis in real estate,  I graduted and go my baker license in 1980.  

(Emphasis mine.) 

My neighborhood shows a very high crime rate on the stats, but I feel very comfortable living here, so I'm not sure I'd put too much emphasis on the crime info.You might want to check out Al Williamson on this site and my member blog: http://www.biggerpockets.com/blogs/4445-collecting..., since I am also renting in a C class low income area.I'd also strongly recommend reading Buy and Hold Forever to see the other side of the coin.There are ways to verify the rent coming in, but be sure to plan for 10% to go out in turnover costs, which you may be able to mitigate in a nicer neighborhood.