I am not well versed with this section of the tax code, but advise caution and due diligence if you decide to proceed with your strategy.The BRRR strategy is designed for rental properties.   

I think your first step is to call your county and find out whether this is possible, and what legal hoops you would need to jump to make it happen.

Your options will be limited, You can file documents that will allow you to go after bank accounts and garnishments but that gets more complicated and he may need legal advice to do that.

I store this money in a safe as I have no legal job on paper as I file no w2 or anything of the sort.

Those "Fannie Mae" guidelines are the "allowables" set by Fannie, and only mean what Fannie will reimburse the servicer for, not what the actual normal costs are and even then, it's only when the servicer is using that designated counsel approved by Fannie.

Around here about $90 to $100 a square depending on finishes and complexity of design, which would include driveway, septic system, and no landscaping

My lender worked very closely with me through both closings, making sure I had correct and legal paperwork on the first closing so that it would go through smoothly for the second, walking through the timeline with me, following up on the appraisal and just really being on top of her game for the entire process.

If you take @Kevin L. s proposition, my little 16 SFR business should have PM software, commercial office space, HR, Legal, Marketing and maybe a corporate jet and helicopter. 

Do not rely on it for legal advice.

Can you legally lease to illegal immigrants?