What he has shown being able to do is amazing...Finally, Bill Gulley sounds to be the best informed compliance person on BP.

And that's what I mean about compliance, spoken like a misinforming guru, "tenant"  has nothing to do with financing! 

The Co-owners have discussed the co-ownership of the Property and have concluded that to avoid conveyance and ownership problems created by death, bankruptcy or insolvency, disputes and the like, it is in the best interest of each Co-owner that the holding of the Property be governed by an agreement which defines the rights and obligations of each Co-owner in the form of this Agreement and in compliance with IRS Revenue Procedure 2002-22.II.

Advertising a skateboard for sale that you do not own is a violation of law unless you have specific consent of the title holder and you are in compliance with applicable brokering laws. 

Some wholesale deals involve serious problem solving (title or lien or code compliance), some involve very difficult tenant situations.

I also see posts where people are asking about borrowing in personal name from HML (which generally seems not the case due to legal compliance issues for HML) and how HML and DSCR loans make sense to do combined when purchasing in LLC (I see some folks asking about buying via HML and then refinancing with conventional loan - not even sure this is possible but if so, you'd have to transfer title to personal name too which I don't think makes sense to do?)

Seller doing financing of consumer purpose mortgage loan takes on a bureaucracy worth of restrictions, compliance laws, and penalties for even minor infractions.

In addition, not more than two rooms may be rented to not more than two persons other than those occupying a single-family dwelling, provided there is compliance with health and building code requirements.

For Seattle, this is: Permits, Licenses and Regulatory Compliance - Seattle Services Portal | Seattle.gov

If you don't, you're in non-compliance and are subject to IRS penalties. https://www.irs.gov/government...If your next question is about how the IRS will find out and how often does it pursue it - the answer is not often currently.