Your question has been debated between BP tax experts both privately and publicly, for example here: https://www.biggerpockets.com/forums/51/topics/819991-expens...And we ended up where we started: no consensus and no clarity.There have also been court decisions that support my interpretation, even though I personally find these court decisions debatable.

. ;-) The following is just general informationIt sounds as though the seller has an investment to sell, not his private home.

Instead you will cash flow right out of the gate and appreciation is faster in those states with TLC properties or adding things like an ADU, or Carriage home on a bigger lot.Most of my investors that live in CA purchase in those states listed above and in most cases its easy to introduce them to local Seasoned realtors Contractors, Handy Men/Women that can help them save money and feel secure about the distance from home to REI.

If I am doing the security deposit I want to quickly see how old that carpet or paint is.

I have yet to have a guest ask for a refill or mention the quality (I tried to pick a nice-looking, not-too-expensive brand).Be careful with the scents -- I had a run of people pulling out and hiding the scents and one or two people complained that they were scent-sensitive in private notes. 

Plenty exist for private lenders (which is what seller financing is) and can track payments and am tables and also do automatic electronic withdrawal (ACH debit) which helps improve the likelihood of getting paid promptly each month.

Collection agencies cannot report to credit bureau if the  landlord is a private landlord.

Consider using an FHA loan to secure a 1–4 unit property with just 3.5% down and take advantage of tax benefits by living there for at least two years.

I know that the general guidance is that emergency funds aren't to be invested, but given our financial security and the fact that we already have a personal e-fund in a safe, non-volatile location, would it still be crazy/unwise to invest this 15k in an S&P500 index fund in a brokerage? 

This is a screenshot from a private Facebook group for tax professionals.