So seek legal advice in your state before engaging in one.

Absolutely agreed...in fact, we tried out best to design the house in a way that would maximize appraisal while reducing building costs...mostly by playing around with the above grade versus the below grade square footage and finishing just enough of the basement to get appraisal credit.The question was more from a "what do lay-people generally mean when they say/hear square footage" standpoint...or even what do builders mean when they use the term.I'm fairly certain there's no "right" answer...everyone will have their own opinion...I'm just trying to form mine... :-)

The biggest issue is that you must be engaged in a trade or business to qualify.This goes to how do by our treat your rental activity.

Therefore, the designation of "Non Owner Occupied" doesn't make sense.

We did turn down the lady with 10 crated dogs, even though my husband saw dollar signs, LOL.I would recommend that anytime you are renting to unmarried adults that you designate the strongest tenant as the primary.

@Jose Figueroa I look at these shows from the perspective of someone looking to learn more about the design elements.

@James Davis Short term rentals, like what your tenants are engaging in on AirBnB, violate SF city hotel laws.

on one hand you are showing me the independent contractor agreement that specifies that the guy is not your employee but on the other hand you are using insurance product specifically designed for employers"  that question might come during any employee/employer related lawsuit about overtime or SS premiums not being paid.  

Those are all options I plan to investigate more and possibly engage in down the road.

I'm still unsure what my strategy is going to be, but I do know my overall investment strategy will one day involve real-estate, so I'm here to learn as much as possible.I'm also excited to see where my marketing, branding and web design skills can be married to the business/finance skills to be applied leveraged in real estate deals.