The properties must be professional managed as in any event the rules are violated the tax credits become worthless, so it's a very tough business to break into.

Check local city rules.

That structure follows the rules of Regulation D which is set of rules that deal with exemption from being a fully registered security.

There are no rules.

Hi Michael,In "real life" (opposed to my secret investor identity) I am a web developer and run Ally Web Solutions, LLC, on a daily basis.

There are rules to follow so you should get a professional's help, but it could save you around $10k in taxes.

Some banks though may still use stricter rules though.This is probably not the latest announcement from Fannie Mae, but it should help clarify part of your question.http://www.homefinder.com/content/Buying-Guide:Fannie_Revises_Investment_Property_Guidelines

Gee, there's a hundred or more ways to do deals.Make it known to your PHA that you are willing to strictly abide by the rules, keep properties in very good condition and begin as well as maintain a good relationship with your PHA or Sec. 8 adminsitrator.

I self manage, and I factor in this cost when I purchase using the 2%/50% rule anyway, so the only effect it would have would be that I would not be paying down RE debt as quickly as I am now.

Also clarification on the "no rental for 12 months" rule; if we rented it out as a vacation home (for two or three days at a time, like on VRBO.com) does that count the same as a full on leasee-landlord situation, or could that still be an option for us?