The depreciation basis for the rental portion is not affected.Even though both units are under the same roof, you really have two separate properties -- one is your personal residence and the other is your rental property.

Should I have the 18 year old sign the lease, or do I just list them with the other children in the occupants portion of the lease?

I had the same problem in a house where the return duct was installed in the crawlspace There was a portion o the duct that had been damaged by raccoons.

Transfer their portion of title over to them so that they are not a lender, but a partner.

Portions for personal use, etc.I'd check with a lawyer and a CPA.

You can choose to withdraw a portion of the exchange proceeds and pay taxes on that portion.

(Example: in one area where I buy, trash is paid quarterly ahead of time, so when you buy in the middle of the quarter, you owe the trash fees that were paid ahed for your portion of the quarter.)And if it's REO, then you will pay for the U&O (Use and Occupancy inspection / Certiificate of Occupancy).And if it's REO, then closing might be a LOT longer than 5 minutes ...

I will say he owns the Dakota Holdings llc portion. yes I meant author.

I'm not sure about your numbers, I guess you are financing a good portion of this investment and the lower appraisal means more money up front to qualify for the loan.I would need to know more about the location of the investment and the return on investment after PITI maintenance and property management to tell you how i would handle this.

I would put a portion of it in flips to maximize a short term profits.I would use hard money loans to also maximize profits and to decrease some of the risk (assuming it's less risky).