I am guessing I need to get a business entity established with proper lawyer/accountant/property manager set up before I buy.  

Unless you think that $500/door tenants always behave properly...4.

It wasn't their job to make sure you did the purchase/letters of estoppel/assignment of lease properly.

Used properly it can be efficient.

you do owe it to yourself to Check out Grand Junction Colorado Investment oppurtunities as well as the outdoor life style " A GOOD DAY OF FISHING AND HUNTING is ALMOST as GREAT A DAY as INVESTING " lol  No matter where you go watch out for those California Transplants lol !!

Once you work out all the numbers if you find out you can do it legally then of course check with your insurance to see what kind of policy you will need to have the new or remodeled structure properly insured. 

I called my accountant right away when I found this out and he stated it had to be done that way because of new program or something the irs is using, taxes would not allocate properly or something.

Hypothetically your rich uncle could loan you the money and secure it against the house legally, but he cant be engaged in that activity as a business without the proper license and without following some pretty strict rules.Very few HMLs are licensed to loan to owner occupants. 

I have been very careful to make sure I am within the proper guidelines.

Inspector: to confirm the condition of the house.Insurance provider: where to go for getting proper coverage and get competitive ratesMortgage Broker – I am not sure if they lend to overseas investor?