Great neighborhood, that’s where I live but not ideal for REI..Most apts are Coops the majority of boards won’t allow you to rent and if they do there will be restrictions..SFHs, Multis or Condos prices are very high, it will be difficult for positive cash flow every month..

They said these were their internal rules and I got confirmation from multiple people in the bank.

One of these benchmarks for Buy and Hold Investments is the 2% Rule.

Looking for more information as markets and rules do change over time. 

I just want to make sure I know the rules....if there’s an article on here for that please direct me there since I know that was not the original topic  I posted here.  

@Lauren Keen I am not sure one way or the other if you can take the deduction since I don't have all the facts, but I can tell you that the real estate professional designation is not a requirement to take the home office deduction with respect to a rental activity.There is nothing in §280A (the home office section in the tax code) that mentions being a real estate professional is required in order to take the home office deduction for your rental activity.However, in addition to the rules regarding the space itself, there is the requirement that the taxpayer's rental activities rise to the level of a trade or business, which the Treasury has conveniently never defined for us.But it seems that rental activities would rise to the level of a trade or business if the activities are substantial, regular, and continuous.However, there is a case, Curphey v.

Not sure what the rule is here for recommending lenders. 

I would check with the 1031 exchange about the rules.

Eventually, if successful profits will be used to continue to purchase additional properties with the same arrangement.Are you saying with this structure we would be considered a "Syndication" and would need to abide by SEC rules?

If she doesn't get her certification and decides to break the lease courts could rule you rented the property under false pretenses,and decide she won't have to pay any fees for breaking it.