You can use the extra income to pay down debt, save for retirement, or invest in additional properties.Tax Benefits: There may be tax advantages to renting out a portion of your home, such as deductions for mortgage interest, property taxes, and depreciation.

Give us tips on how to make a safe, legitimate loan with private lender.

It's why companies like ours exist - we are creatures of the tax code. 

You really need to find an accountant that loves tax strategy. 

But it allows me to keep one bank account and file one tax return, while still spreading out over multiple entities. 

@Michael CampbellCounty tax office records or recorders officeIf it’s bank owned you will have to wait until their asset management company (3rd party) lists it for sale or attempts to auction it off on a site like auction.com etc

The entry-level Quickbooks Online software itself is expensive $250/yr... that's not even adding up potential books/courses, CPA fees or personal tax filing software like Turbo Tax.

Down payment would still be $60,000.Of course if buyer defaults on the loan I would still foreclose, and I would require home insurance/property tax in escrow like the banks do.Do you think this would work?

The CPA is still doing the tax return. 

Taxes and insurance costs are "covered" in the rent.