I have read that things are pretty grey there:The right type of beach home or vacation cottage can produce great tax results when the average rental period is seven days or less.But it’s tricky because when the average rental period is seven days or less, the property is not a rental property as defined by the tax code.

Update: VA pulled the plug on the Alteration and Renovation loans due to the COVID-19 pandemic.

@Emanuel Ohunwu texas property code related to security deposits.https://statutes.capitol.texas.gov/Docs/PR/htm/PR.92.htm#C

I assume I need to apply for a permit but I'm not sure of the alterations that were made (what walls were originally in place or new wall that were built to convert it to single family).

I would greatly appreciate any feedback and references to the tax code on this. 

I'm not specific to certain zip codes and it seems one realtor was really trying to get me to commit to an area. 

Detail below:  Qualified amounts paid as principal or interest on a qualified education loan (as defined in Code Sec. 221(d), of the designated beneficiary or a sibling of the designated beneficiary.11 A “sibling” means an individual who bears a relationship to the designated beneficiary that's described in Code Sec. 152(d)(2)(B) (i.e., a brother, sister, stepbrother, or stepsister) This rule allows a student loan distribution to be made from a QTP account to a sibling of the account's designated beneficiary without changing the designated beneficiary.

I am thinking out loud here but you really should make sure that you obtain a clean/clear Certificate of Occupancy before you close the deal.Even if your lender does not require a Certificate of Occupancy, the City is aware that it MAY NOT issue a Certificate of Occupancy without a garage built on the property.IF you close without this being resolved, the City may contact you as the Owner and (a) demand that you build a garage and (b) inform you that you have a code violation while you have tenants living in the building.IF the City decides that a garage must be built, you could obtain a "conditional" Certificate of Occupancy whereby you either promise to build a garage at a later date/deadline or you make the promise along with paying a bond or escrow to the City.Personally, I would make the Seller pay you for the cost of building a new garage as they are selling the property to you that is not up to code. 

Search code violations etc. 

What sections of the tax code or IRS guidelines are you relying on?