Many landlords I know only inspect the premises at the beginning/end of the lease term. 2) Animals by their nature pose a big concern when it comes to landlord liability exposure.

After you purchase it you need help from a certified electrician, experienced roofer and so on....Just like anything you use and purchase you may need help.

The question is: do landlords have to issue 1099s since technically income derived is passive in nature (i.e. not an active trade or business)?

Cant they use those funds in the form of a balloon mortgage or something of that nature for a flip?     

Off the topic, what happens if a title company actually misses a lien or something of this nature.  

Branch of a Foreign Bank or Insurance CompanyInterestDividendsCapital Gains (Income Code 9)RoyaltiesReal Property Income and Natural Resources Royalties (Income Code 13)Pensions, Annuities, Insurance Premiums, and/or Alimony (Income Code 14)Scholarships and Fellowship Grants (Income Code 15)Pay for Personal Services PerformedPay for Independent Personal Services (Income Code 16)Pay for Dependent Personal Services (Income Code 17)Pay for Teaching (Income Code 18)Pay During Studying and Training (Income Code 19)Artists and Athletes (Income Code 20)Real Estate Investment Trust (REIT) and Other Trusts Distributions Subject to IRC section 1445 (Income Codes 24 and 25)Unsevered Growing Crops and Timber Distributions by a Trust Subject to IRC section 1445 (Income Code 26)Publicly Traded Partnership Distributions Subject to IRC section 1446 (Income Code 27)Gambling Winnings (Income Code 28)Notional Principal Contract Income (Income Code 32)Substitute Payment - OtherCapital Gains DistributionsOther Income (Income Code 50)

In my opinion properties well suited for vacation rentals have:A great location for touristsNear outdoor / recreation destinations (beach's, ski resorts, etc.)Near nature (on a river, lake, ocean, etc.)Or perhaps a great location for business / corporate housing (Downtown, near major companies, etc.)Decent demand year-round (If it sits vacant 40 weeks out of the year you would be better off with a long-term tenant).Great amenities (WiFi, TV, Furnishings, Linens, Coffee, small appliances, etc.)Accept credit card paymentsPool / Hot Tub is a nice bonusOutdoor space at the property (Deck, balcony, patio, BBQ area, etc.)Pet friendly (not required, but will get you more interest)If your property seems to meet many of the above characteristics it is probably well-suited for a vacation rental.Some major differences you will need to figure out (compared to long-term)Who will do routine housekeepingHow will you get the guests moved in and out (lock box, in person, etc.)What laws govern your locationsWhat tax implications (bed tax, reporting, etc.) will you have to figure outHow much extra will you need to charge to make all the above worth it.

You will be required to to sign an "identity of interest" statement that looks like this:"I hereby certify to the Department of Housing and Urban Development(HUD) and Wells Fargo Home Mortgage, that I/We do not have anidentity-of-interest with the seller of the property.

I know of a specific program available only to certified financial planners that is a subscription based product where they can plug in every detail of all assets and liabilities and then put in anticipated inflation/appreciation/annual rent increase/maintenance and increases etc. and then forecast out to any point in the future and see your projected cash flows, retirement accounts, debt balances, net worth etc. - basically a tool they use to then sell you on why you should buy their given shiny financial product of the day.  

Stating you will occupy a property would require that you certify in writing to the lender that you plan to live in the dwelling for 12 mos in most cases (any program with 5% down on units is likely an FHA insured loan which requires 12 mos owner occupancy after closing).