You can use the extra income to pay down debt, save for retirement, or invest in additional properties.Tax Benefits: There may be tax advantages to renting out a portion of your home, such as deductions for mortgage interest, property taxes, and depreciation.

It's why companies like ours exist - we are creatures of the tax code. 

But it allows me to keep one bank account and file one tax return, while still spreading out over multiple entities. 

Not to mention, have fun explaining to your insurance carrier in the event of a claim that you knowingly hired vendors who were breaking the law and were uninsured.....but its ok because they signed a waiver.

I hired an accounting firm specialized in FIRPTA to handle the forms and remittance and put them in touch with title, but after closing, title company sent them a check made out to the firm instead of IRS.Title company claims accounting firm should cash check and pay IRS themselves.

@Michael CampbellCounty tax office records or recorders officeIf it’s bank owned you will have to wait until their asset management company (3rd party) lists it for sale or attempts to auction it off on a site like auction.com etc

Down payment would still be $60,000.Of course if buyer defaults on the loan I would still foreclose, and I would require home insurance/property tax in escrow like the banks do.Do you think this would work?

The CPA is still doing the tax return. 

Taxes and insurance costs are "covered" in the rent.

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).