Cash flow is mainly a mechanism of leverage in the deal.

Interestingly, the records do include the downstairs space as part of the livable square footage.

@Mohit Gupta  depending on number of occupants your regular insurance can cover it, read the policy, ours covers two roomers. 

Hard Money typically funds 90% of the purchase price and 100% of the rehab on a draw schedule.

@Jonathan Chan Here is a list of allowable assets for SDIRA investing. 

If they don't than I would gather as much evidence that point to them, bill them, and if you go to court you have your evidence.

Wishing you the best of luck on your investment journey!

In that case, this would need to be an all-cash purchase and could be sold along with any liens, violations, or judgments against the property to be the responsibility of the purchaser.To your point, this is difficult but feasible.

Have you thought of which states  you will invest in and also the strategy like BRRRR or fix and flip or STR?

Get out of your comfort zone.