Form and LLC and elect to be taxed as an S-Corp http://www.thetaxadviser.com/issues/2013/dec/casestudy-dec2013.html

He has about 20 years experience and is renovating his own home in Enfield, so he knows the challenges with older homes.You didn't mention electrical, if it's not up to code the whole house will need to be rewired.  

Like the idea Chance, but you might look for a properly zoned, up to code, duplex with a separate units (entrances, meters, addresses, etc) just to get a clean start. 

That is if you are willing to bring it up to code.

We recently had a tenant call code on us for him having roaches and our lease says tenant is responsible for pest control.  

Awesome advice @John Hixon, I also sometimes use listsource to pull the last 6 months of 100% equity, absentee owners in a certain zip code.

The best part is you'll be the only offer on the table for consideration, so your chances of getting it accepted are much higher :-)CASE STUDY: 1139 Clinton Rd, Sacramento, CA 958251139 Clinton Rd is a duplex in the 95825 zip code near the Arden Fair Mall and Sac State.

Call the code enforcement officers at the city planners office and ask for an officer to come inspect the property to make a determination of the legality of the property as a whole.Do not close escrow with firm proof in writing that the home is 100% up to code.Don't get bullied by agents or anyone else to proceed without proof.

But fortunately, the code enforcement officer confirmed that the permit for the front door was also the permit for the whole unit.

The zip code 30032 and 30030 are the "hot areas" right now, tons of new construction.