I am planning to get my first investment house; I don't want to use my savings, so I have an equity line of credit for 50K and got pre-approved for a loan up to 300 k? 

From what i've read online (not financial advice) the bank only requires one of the owners to use the property as their primary to qualify for a primary financing.From what I understand this will also very much depend on the internal guidelines of the particular lender you're talking to. 

I'm not sure if it makes taxes more complicated or different either.

Been doing my due diligence to find some homes in the Raleigh area that are pre-foreclosured on as well as foreclosed.

This post is for the STR investors who are looking to take advantage of the STR tax loophole which allows you to write off paper losses against your active income.

Assume there is a way to categorize it, track individual expenses, then have cash-flow reports for income/expense come tax season.Thanks!

That would depend on a few factors:How confident you feel in managing the project (as @William Hutch mentioned).How confident you are in recognizing building issues/concerns, and pointing them out.How much time you have to oversee and research how things should be done.

If it was me I would give them the 1000 and have your lawyer write a release of all claims as to the water.. and probably not renew unless other wise they are great tenants.. but if your already asking for pre signed checks sounds like collections maybe an issue as well.

Not sure if that would be a guarantee either depending on the jurisdiction. 

I pay myself on a W2, I've submitted my tax returns and a bunch of other info to them, now they want to see the company's financial records.