Used properly it can be efficient.

Once you work out all the numbers if you find out you can do it legally then of course check with your insurance to see what kind of policy you will need to have the new or remodeled structure properly insured. 

I called my accountant right away when I found this out and he stated it had to be done that way because of new program or something the irs is using, taxes would not allocate properly or something.

Hypothetically your rich uncle could loan you the money and secure it against the house legally, but he cant be engaged in that activity as a business without the proper license and without following some pretty strict rules.Very few HMLs are licensed to loan to owner occupants. 

I have been very careful to make sure I am within the proper guidelines.

Inspector: to confirm the condition of the house.Insurance provider: where to go for getting proper coverage and get competitive ratesMortgage Broker – I am not sure if they lend to overseas investor?

(get seller to pay the closing costs and you can get a decent house pretty cheap)The cons: -you will have to pay PMI for life of the loan- contractors that do the work need to have all proper paperwork, and lead cert if doing lead work (these guys can be a lot more expensive)- 3.5% is based on total project cost, not just the price you pay for the home.

So 2 questions :1) To tax my assignment fee properly what should I do?

Indianapolis isn't Hawaii Bob(stating the obvious)Even if a house does not appreciate for 20 yrs, and rents, only go up a few percent a year.If a property is bought right and cash flows properly.

The majority of people who go through weight-loss programs and actually lose weight seem to gain weight again after completing the program.