I have friends that own and operate a B&B in Cashmere Washington...but they had it built specifically for that purpose so they have their living area and then 4 suites they rent out and one commercial kitchen that is used obviously for the guest breakfasts and their personal use.You would want to check with your local (County or City) Business License-Permit Department to find out if you can legally operate a B&B in your home at the property you reference.  

As you can see per the attached images the damage to my front stairs is pretty extensive from the mortar and winter salt.

***This is very general/broad advise but I hope that points you in right direction.At the very least, refer it to a broker as a listing and build a relationship with that broker for future comps your going to need as you start your investing career.  

My agent said the bring in $2200/mth but have no other debt or payments.They are stressed about having to move (it would stress me out facing packing all that stuff up) and willing to pay more to be able to stay.I feel we just screen them like new tenants and if references check out I'm leaning towards continuing with them, although they are below the 3x rent income requirement.The property would probably need $3-5k in carpet and paint to ready for new renters so it would he great to have a good built in tenant for a while.Anyone have a situation like this go bad that can share some things to watch out for??

pm sent for referal.

If I was able to package my house into the commercial loan, I would free up my FHA status enabling me to purchase a duplex-4plex for me to live in and rent out the other portion.Any thoughts or ideas, or references would be appreciated.Thanks in advance

we take the first month and sec. dep at lease signing, unless special circumstances exist, I think Brandon may be referring to Ernest money that would be applied to first month, and that would have little regulation, unless you are licensed, and use state forms that direct where the money goes, and how it would be distributed. 

I would also ask them for references of their GC business and see how they manage that part of their life.I would also ask for the names of any others that they had partnered with to get a sense of their business skills.

We run background checks, credit checks, and verify income, and do a landlord reference check.

Santa Clara County (March 2016)All homes $855,000 +10.3% 1389 All used homes $980,000 +9.6% 870All condos $675,000 +21% 395Start with more affluent neighborhoods with top schools.Palo Alto $2,472,000 +.09% 26Palo Alto(306) $2,160,000 -13.02% 21 Los Altos $2,640,000 +4.5% 28Los Alto Hills $4,050,000 -5.7% 7 Cupertino $1,590,000 +0.5% 3195129 $1,392,000 -0.2% 2194087 $1,600,000 +6.5% 3195130 $1,303,000 +24% 21Saratoga $2,015,000 -10.3% 27 Los Gatos(032) $1,605,000 +3.5% 27 94040 $1,511,660 +11.2% 1494041 $1,535,000 -7.5% 7 94043 $1,280,000 +4.9% 36 94085 $1,130,000 +29.1% 1394086 $1,112,000 +6.2% 3794089 $1,082,000 +23.2% 11 95050 $856,000 +20.5% 2095051 $972,000 +17.8% 5395054 $951,000 +10.6% 2095008 $1,010,000 +13.1% 31 95120 $1,460,000 +12.7% 31 Central San Jose The following is in line with earlier report where the housing is so high, affordability is an issue home buyers need to move further away and currently Central San Jose enjoyed being one of the most desirable neighborhoods.95117 $1,062,000 +26.4% 1695124 $1,010,000 +7.2% 4795125 $ 998,000 -.02% 7095126 $754,000 +17.6% 2295128 $828,000 +10% 25North San Jose and Milpitas95131 $831,500 +12.4% 4095132 $842,500 +12.3% 2695133 $692,000 +2.2% 2295035 $795,000 +4.9% 55 Refer to North San Jose home prices 2016 Downtown or near San Jose town center95110 $492,500 -4.4% 2495111 $575,000 +3.6% 24 95112 $617,000 +2.8% 2995116 $477,250 +12% 24 95122 $477,500 +10.6% 28 Refer to San Jose downtown home prices 2016 Q1Evergreen neighborhood ( San Jose)95121 $757,000 +19.5% 2695148 $755,000 +5.6% 3395135 $1,120,000 +4.7% 2595138 $1,272,000 +7.8% 21South San Jose neighborhoods95136 $727,500 +4.1% 3495123 $743,000 +16.1% 5395119 $775,000 +5% 1495139 $726,666 +7.8% 4 As people can not find quality homes they go further to South Santa Clara County.