I understand the credit report will reflect it.

The California Association of Real Estate purchase & sale agreement has a "subject to" section.The most important issues are to proper disclosures to your seller so they understand the pro's & cons of entering into this type of agreement.

You're proposing a very complex structure that may be hard for lenders and insurers to understand. 

If you have a broker/agent representing make sure they understand your motive behind the purchase and your contingencies are expressed with full-force of being able to get out of the PA/LOI.

I understand closing cost will be another payment amount.

Analyze the finances in detail to understand the potential ROI, cash flow, expenses, financing costs, and tax implications of each property.

It serves as a designation for professionals actively involved in the oversight and operation of their rental portfolios.Summary of Requirements:To qualify for Real Estate Professional Status, investors must fulfill two key criteria:50% Rule: Allocate over 50% of all annual personal service hours to real property trades or businesses.750-Hour Threshold: Spend more than 750 hours materially participating in specified real property activities, including rental operations.Navigating these criteria demands meticulous attention to detail and a thorough understanding of IRS regulations.

I understand for tax purposes that I can only take two-thirds of the expenses related to the house to offset the rental income.

I understand your excitement about taking the plunge into real estate investing.

This market is tricky, so having an agent that is active and understands this market is super important.