But you can file an Entity Classification Election (IRS Form 8832) that allows it to be changed to tax however you want.

But for the purposes of a regular mortgage: It's a complete house no matter how gross the oven and bathroom is, provided that they are technically functional.

Its been a while since I was lending money in CA.. but I do know that i prepared my notes and the title company prepped the deeds of trust in our transactions.in Attorney driven closing states of course its not an issue as Ned mentions.. because the closing function is handled by attorney and so they can prepare any of the documents and they do so as a SOP in these transactions.Not difficult.. and loan servicing with a note with no payments until the balloon.. is probably not needed as there is nothing to service.. and again this is up to the Bene to decide

It doesn't have any functional purpose 

Just look at who is on the max line outside rush hour and you see its major function is low cost transportation for the homeless and unemployed – hardly a factor in promoting business.

(Leave Servicing Fee out for exampleThe Present Value (PV) function is pretty easy to setup and use.  

Sustained profitability and appreciation are functions of demand and legislation.

Find a town with a University, not just a college, that classification is important for some reason I find.

I was more speaking to @Tony D. about the layout and functionality.

In my opinion, it's around the 135-140k price point in the Cleveland market where the rents peak as a function of home value as it pertains to yield.