-Steven the Tax GuyYour guide to IRS laws, rules and regulations.

The 1 year owner occupancy rule is based on intent.

It's not excluding children, it's limiting the number of occupants given the available living space, which is deemed necessary for the health and well-being of the inhabitants.Of course, this is a general rule.

IOW, the much beloved 50% rule.

In particular, note the 50% rule.

And a bid of $1500 definitely merits getting other bids.Mike Welch hints at the 50% rule.

Are you comments simply because you are taking a conservative stance or are there specific letter rulings or cases that cover the issue?

Be very careful and make sure you understand the rules you agree to follow.

But if only 1st unit tenant pay utilities you have some probs on winter with expenses I guess.With $26,400 gross income and an conservative 55% expense rule I came to an NOI of $11,880 (10,1% CAP).

HUD properties have unusual rules for inspections.