I am not sure why is that but you have to be careful on what are the agreement on that contract.In this case, I would recommend to get involved with a investor friendly realtor who will help you as it could be many issues during the process as the titles are not clean in most cases and many variables have to be checked. 

If there is only a JV and not a new LLC formed, what forms are issued at the end of the tax year?

Honestly, I don't think it is worth using one of those companies unless the house is really in terrible condition and has issues with title, major city liens, is a part of a lawsuit, etc.

It also offers a tax deduction and is a homestead protected against most financial issues or non payment under a Chapter 13 law and a rental is basically a debt burden that if you cannot pay or something happens you get evicted.

The real issue is what is done with any overages.   

Save for Your First InvestmentCommon Pitfalls to Avoid:Don't rush into deals without proper due diligence.Avoid over-leveraging or taking on too much debt.Be cautious of "get rich quick" schemes; successful real estate investing takes time.Don't neglect legal and regulatory considerations.Remember, everyone's journey is unique, and there's no one-size-fits-all approach.

@John ThomasIf you want to develop your rental property and reach financial freedom with real estate investments then begin early following these basic steps: research, network with professionals, look for a local market, put together a team of experts in this field, assess your financial situation, specify the criteria for investments, adopt baby steps, get to know all the details about the area where you want to invest money, then invest them or take part in any riveting event after thoroughly examining it.Put together a group of pros—people like farm operators, land agents, building firms' representatives, lawyers who handle real estate law issues or litigators dealing with real estate disputes, loan officers.

If you really want to build 'affordable housing' - and the debate is still open if that is indeed an issue and how and why.... then the first thing to do is get the govt to go away.

I obviously have the legal description of the property that came with all of the closing docs.Thank you!

If it was a less damaging issue I might wait it out, but water, fire and 'safety' (CO detector etc) and it would be on my schedule not theirs.