There are tons of books and information on the subject. 

So when you owner finance the property to someone Subject To the existing mortgage, you run the risk of your lender finding out and calling the note due.

Then you can record your expenses there and it makes it easy for you and your CPA.Regarding startup costs versus expenses, there are plenty of articles you can find on the subject with a google search.

Do you know who is the #1 expert in SUB2 deals (also known as "Subject to")?

The only income that is taken into account is the subject rental income. 

“One reason for the request is that GSEs Fannie Mae and Freddie Mac are not subject to this rule, under a condition called the "QM Patch."

LLCs have zero to do with license law and do not shield you or your broker from liability in regards to you being a licensed individual.Once you become a licensed individual, you cease to be a memeber of the general public, and become subject to the supervision of both your broker and your states real estate commission. 

I been reading & studying on the subject of real estate for about 2 years now, but I’m scared to take that leap of fate.  

This doesn't include all the time it might take to find a property.30 days minimum to close on subject property (with financing)30-60 days to complete renovation (with no over runs)30 days minimum for buyer to close on the flip endThis is 90 to 120 days and is not realistic, especially for someone that has no experience and can handle all of the obstacle that can come up (and the will). 

You might be surprised how lenient some municipalities are on this subject specifically.