I just want to make sure i handle the paperwork properly so that when the end buyer goes to get financing to buy the property there will be no glitches.  

If I understand your numbers properly, the 10% = $3000 annually or $250 / month BEFORE maintenance, vacancy, and management fees.  

Will be asking, after I put them in a proper order...lolbut thanks for the support.

The regs are quite specific and IMO it is unlikely a seller financing individual could properly notice and communicate with the borrower, provide the correct and timely statements, have the required toll free 800 phone line, etc.I'm not confused about the exemptions and am planning to use them.

I'm having trouble renting the other side since the rents are so low in this neighborhood if I drop the rent to 400 like the rest the numbers still don't work and if my other tenant finds out the other side is paying 400 I don't know how he would react( big hassle).

There are some specific things you'll need to consider though by doing this type of transaction (Which is commonly referred to as "Sub 2" or "Subject to", meaning you're buying the home "subject to" the underlying lien staying in place).You need to properly disclose the due on sale clause, and what that could possibly mean for the selleryou need to wait 7 days before closing with your end buyer (Texas property code says that when selling a house with an underlying lien you must wait 7 days after giving your buyer an underlying lien disclosure before you can close.

We own a property management company and when run properly, even when it was building to scale, it can be a very profitable business for good business operators.There is a big difference between being a property manager and owning a property management company.

Do emails constitute the proper means to give notice or are you writing to some virtual agent in the cloud?

I can not control how people react to my mailings.

They are not even cousins.The IRS isn't in charge of assessing financed transactions except as to tax matters, your CPA probably isn't versed in originating financing agreements, that's a bit out of the domain for a CPA and the Federal Tax Court isn't the proper jurisdiction for RE transactions except as they pertain to taxation.They were also speaking to what not to exceed, not what the customary or average credit was being allowed under options, 10% of "firm" equity places a buyer/borrower over the hump for the financing required, most contracts shoot for 10% equity to be acquired.Dodd Frank incorporates the SAFE Act by specific reference.