Better wait for an expert to confirm or deny but if you actively participate in a business then you'll pay SE taxes.

Wait for the day: seller's divorce puts lien on house, pending lawsuit puts lien on house, seller has other financing they didn't mention that miraculously pops up the day of closing, seller is audited by IRS and state and liens the house, takes away Neal's car with the tow truck jaws, there is any insurance claim and insurance company denies because of fraud and goes after seller and Neal, or insurance company issues check in lender's name and seller's name but seller is dead or unavailable,In some states you can BUY a LLC.

Me running the background check and seeing the felony will get you denied as I don't want to wonder what else you failed to tell me about.

This has proven difficult, and they've been denied due to a lack of income.2) My friend has the means to put in place a mortgage on the property personally.

Deny.

They will deny ever saying it.

They will try to deny claims and then low-ball you on value. 

One summary was denied but another was granted for imposing a rent bond.

Most we have actually denied during our screenings because of credit score / other factors.

I would never want to deny someone their constitutional, human right to defend themselves.