The Title company does  a search to see if the person selling has the legal capacity to sell, to find any  other owners, mortgages and liens on the property and to identify anything that may affect ownership to the new buyer.This is all done prior to signing for transferring ownership.It is not related to doing the Lease or the Option.Yes, the option fee is used as the down payment.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

The most obvious is that you will be able to offset your mortgage with renting out a few rooms.

Hope I have articulated the question properly...Mukesh

Quote from @Shivani Kumar: I am trying to learn how to properly estimate rehab costs and negotiate with contractors.

Traditional mortgage, HOA does not allow immediate rental (need to live in it for 2 years), and so I did but with the intent of renting it in the future.

The most obvious is that you will be able to offset your mortgage with renting out a few rooms.

Likely a retail mortgage lender with extremely high margins.

I'm looking at the proper treatment of the de minimis safe harbor election 1.263(a)-(f), specifically paragraph 6 which details the anti-abuse rule.

I am carrying the mortgage.