The simplest is that you get an incorrect report or an insufficient report from a lousy vendor.  

Collin Schwartz congrats again realized I have been posting names incorrectly.

You'll know the property and it'll make self managing the tenant when you move out easier (I've never lived in a place without quirks.)After moving a few times, you'll know what type of house you want longterm.

You read that incorrectly..

Perhaps I am reading the law incorrectly or others are in the game and not playing by the rules.

Reasons as to why this is incorrect?  

This is just a very cursory look at some of the opportunities and everyone has quirks, nuances, advantages and disadvantages.  

This is not a complex matter, but if it's done incorrectly, it can create unintended negative consequences down the road for your folks, you and your sibling.  

The biggest issue is the technical terms.I have a duty to protect those on the forum here from any incorrect information as it COULD be misconstrued which is where I advice someone to talk to an EA or CPA.Honestly never hesitate to message me if you have a question.  

I, possibly incorrectly, thought you might be looking at one of these types of homes.