Just remember creative financing landed multiple people in jail and their defense was "everyone is doing it."

But let's just say "offense is the best defense".

Perhaps by showing a current mortgage statement or conference calling the bank, I suppose. 

If the results match up, good for you; if they don't, you could be in trouble.I also agree that what lenders -- and particularly investors -- are looking for is your thought process...that you're aware of all of your potential expenses and that the numbers are defensible.

I have a retired attorney friend who’s at a conference in SLC Utah now learning more. 

If the rate is above market rates at that time, that's the defense against the due on sale clause.

Disclose everything to the original lender and the C buyer and lender.There are some good conference calls on the Old School Title website that discuss fraud and other issues and the need to disclose.

In her defense she said she could send me something (declarations?

It is not the best way to learn how to be an investor based on the numbers.Reading BP, reading other sites, hitting the library and the bookstore, attending conferences and REIA meetings.

Well I work out of my home also, but have a small office with conference room for meetings.I agree with craig on his first point.Where you will run into difficulty ( if you have a home based business) is when you try to get funding and financing for your LLC such as unsecured business lines of credit, etc.........Most lenders like to see a physical office building and will sometimes google earth your business address to confirm that you do have one.Of course that is not in every case, but I do let business owners know about it.