You have to make these suggestions/laws/rules, whatever you want to call them apply to every wholesaler and every FSBO.

Prestia is pretty strict with their loan criteria and won’t finance a building - only single apartments.

Louis County is pretty strict with code enforcement, you could always call in to them and see what they could do to help you out.

And if they are not getting back 100% of the security Deposit then you need to itemize the deductions and submit it to them in writing within the time frame of your State Laws.  

If I do get to the point where I have multi-family properties and a family home, it would make the most sense for me to sell this property so I can narrow my focus into strictly managing and acquiring bigger deals.   

I know in the past, I have saved up my points and had the full intentions to use the funds strictly for a vacation but then decided later on to use it for something else like business cards or advertising or to take my girlfriend out for a nice dinner and then I never went on the vacation. 

Computers are know as listed property, and if you want the deduction, there has to be strict record keeping. 

It may not be strictly legal but what they are doing is definatly not legal.

That is a very questionable decision.An alternative might be to look into building a SFH with a separately metered two bedroom in law suite over the garage.

However I do not know the laws and such of your state.