Check out the 1040 instructions if you want to find the penalties, and what triggers them.

its just everything else real estate related I bet 20% of so called investors buy 80% of the props.. the rest are dreamers or afraid to pull the trigger are supreme time wasters. and or the number crunchers who rely on some spread sheet to determine their returns etc etc.

Before I pull the trigger has anyone used any of these companies and if not do you have any suggestions or recommendations on getting some help on making sure this done correctly or can recommend someone that can help me.

Determining whether the venture falls under a service or rental business hinges on the provision of substantial services; for instance, if a bed and breakfast service is offered, it must be reported on Schedule C, triggering a 15.3% self-employment tax.Moreover, personal use plays a crucial role in the classification of the property.

It's better to just not have a stove in there -- the triggering offense for most city code violations -- and do a coffee bar, etc.

@Cyndi Hong your lender will advise you on what’s best also, let them know your plan to transfer it because you don’t want to move it to an LLC and trigger your alienation or due on sale clause if you have one.

[3] Will buying the 1st loan trigger a foreclosure by a 2nd note holder, meaning will I need to pay off both 1st and 2nd to assume ownership; would this differ by state such as Texas or California or Florida (???)

@Benjamin Sulka If i'm understanding you correctly, you are not liking the numbers of a duplex after you move out and have to rent both sides.I obviously don't know your numbers or what you are accounting for but if the building is generally newer and in better condition it is ok to dial back the capex and repairs budget in my mind.Additionally we pulled the trigger on our house hack really without considering what would happen when we left. 

Obviously your in this position able to pull cash out because you made a good decision back when you pulled the trigger to buy that one.

The best way to find a mentor is to: 1) Find a really bad deal2) Post on BP about how you are about to pull the trigger on that deal3) Wait for the replies and outreach