You are asking for legal advice which cannot be given on the forum.Do you have a broker on your end representing you or an attorney??

I cannot suggest a lawyer for you but setting up a legal entity is pretty simple.If you know what entity type you want, you can simply go to your states website and set it up.

If you have any legal questions on deal structuring, entity structuring, or general questions, please reach out and let me know.

And perhaps, she doesn't know how to get around those legalities because she isn't an investor.

Not sure how much of that PITI is P&I, but you've omitted capital, vacancy, maintenance (mostly caused by tenants), other utilities (at least when its vacant), make ready, legal costs, CPA costs, etc.Landlord insurance is more expensive than homeowners.As far as the tax benefits, your net rental income will be the rent you actually collect, less all actual expenses (taxes, insurance, PM, maintenance, utilities, etc.), less interest (not the principle payment, though) and less depreciation.

I recommend the "Tenants Guide to Legal Tactics" MA version.

Not a lawyer, but I would assume there could be legal issues if I went in there working, turning it over while they still had rights to be there, especially if they were paying utilities through the 30th.

I actually have a hard copy in my office to read through every now and then when I had concerns of what my landlord was doing and if it was legal.

You can use any contract that is legal in the state.

While it's true they lose their deposit and any funds that have been applied to the principle balance on the loan if they don't follow through, they may never qualify (potential for more option money, longer term cashflow though)...The only other thing I can think of would be to enter the deal while legally structured as a trust, then you could transfer all or part of your "beneficial interest" in the property for a fee.