Any legal source of income including S8 must be considered.

Because we have 24k in debt or should I wait to pay my debt first?

The question is, how does the broker have to be connected to the company within the entity for us to legally be able to operate in the state.Can they be in an advisory position (Board of Directors) or do they have to be a partner with equity.

They wanted me to pay off $14,000 of debt which i did but when I walked away from the closing table I paid a total of $12,746 in additional closing fees.14,000:Debt$12,746: Closing cost on new houseTotal cost: $26,977Netting me only $2,400 from both closes.I felt like putting my head through the wall as the information I was given from my loan officer was nothing close to what happened.

I would spend the money and hire legal counsel to make sure you are doing it correctly.

For a $50k loan it may not be worth to spend money on legal fees especially if you think that loan will be paid off soon due to maturity date.Why don't you find a new money for your borrower so he can refinance and pay you off .

(Also look into the FHA 203K loan)Another benefit to going with a multifamily is that it can "boost" your purchase price using 75% of the other income to help your debt to income ratio.

This isn't legal advice, but simply my personal opinion on these issues. 

Then I tried to contact the attorney, but of course they legally cannot give me any information.

Im looking to purchase a 2 to 3 unit property with a fha or conventional downpayment 5% no debt 800 credit score.