Then I would lease the property for $3000/mo designating $2000 payments to the loan and $1000 to the seller until loan is paid off (approx. 9 mo) at which time, I would exercise my purchase option on the balance. 

If you don't want to deal with rent control it is easy to avoid them.Account Closed  and others can confirm this information for you.  

The payments on a 401k loan are not tax-deductible (unless loan is to purchase primary residence, I am not a CPA so this should be confirmed with the tax expert).4.

(does the escrow agent send me some form of confirmation?)

I know here in California there are houses that are designed for this  purpose but there is usually a staff member that stays there.

It's designed to deliver the message that I'm a cash buyer of distressed properties. 

Justin:When Thomas asked about legal non-confirming, I do not believe he was implying your house is not compliant with building and fire codes, but was asking if it conformed to local zoning by-laws.We have student housing as well and it has been our experience that most university towns have occupancy by-laws limiting the number of un-related adults in a single dwelling unit (usually to 3 - 5) which are specifically aimed at student rooming houses.  

This means that the court will distribute according to the Order.I've never seen an Order which designates anything both the named parties or entity. 

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Just heard back from the lawyer, so thought I would update this thread in case others are searching for an answer to this in the future.The lawyer confirmed what the state was telling me, which is: If you want to buy properties to fix and flip or rent out in the state of Virginia, you, the owner/investor/landlord, must be a contractor.