I didn't read this to ensure its accuracy but it certainly looks to be from a credible source. https://www.irs.gov/pub/irs-utl/33-Real%20Estate%2...Cliff Notes:Real Estate Professional Qualification • Material participation in each specific rental • Material participation in separate Real Property Trade or business • 50% rule • 750 hours rule • 5% ownership ruleReal Estate Trade or Business Defined IRC Sec. 469(c)(7)(C) Any Real Property: • Development or redevelopment; • Construction or reconstruction; • Acquisition and/or conversion; • Rental Activity that is not a Passive Activity; • Property management; • Brokerage activities.Example 1: Laura owns 5% or more of a real estate sales office • Works full time as a broker • She owns 3 rental properties and: • She finds the tenants; • Approves tenants and leases; • Approves and oversees repairs & improvements • Net rental losses are $31,000 and her modified AGI is $160,000 before the losses • Deduct the full $31,000 in the current tax yearExample 2: John acquires old homes and contracts 3rd parties to renovate and ready for resale.

Legally, depending on your state codes, you probably need to give more notice.Learn you state regulations before you take over the business.

Until your text counter/counter offers are in writing and signed by both parties they are just verbal negotiations.

I called Auction and they have said send an email to legal@auction dot com and I haven't heard anything.

I  asked him how this is legal and they stated the practice is "wholesaling". 

Signing new leases with current pictures of the property immediately after closing is best if it can be legally done. 

One example recently, I had an issue with a tenant breaking multiple house rules (smoking, party, extra guests, late check out) and causing damage and excessive clean up.

Is this legal?!

The person leasing does not have to occupy the property but the lease has to  be executed - meaning signed by all parties and the security deposit already deposited into your account.  4.

I don't use them because I don't legally have to use and escrow account, but I came across it shopping for a new account.