@Terry Z. if an appraisal is conducted , this report is what will determine the amount the lender will be able to lend.

It involves extensive training in all areas of accounting, including taxes, passing complex exams, accumulating some experience working under another CPA's supervision, continuing education requirements and code of professional conduct.

If you're worried about a lawsuit, someone can always file a frivolous suit, so you accept that risk by conducting any business. 

At sheriff sale in PA, junior lien positions only have an exemption on transfer taxes for partial value - they are exempt for the part that they financed but must pay transfer tax for the value of the part that was financed by senior liens.The diversion to discuss transfer taxes arose because an earlier reply post on this thread mentioned being a note holder and concern about other potential expenses, hence I mentioned transfer taxes because lots of note buyers are in junior position.It’s not an “impound tax” - it’s known as “poundage” in PA, basically a commission paid to the sheriff when a property sells to a bidder for an amount above sheriff’s costs to conduct the sale.

We had a hiccup during financing; in short neither I nor the lender were aware that it’s a condotel until after we started loan application and conducting condo questionnaire .

I am finding there are tons of tools, technology and resources that make not only finding good deals possible, but conducting due diligence, buying and managing remote properties very possible.

I was only speaking to the tax implications of conducting things as a business (max deductions) versus personal (few if any deductions).

All of that matters with how you really conduct the negotiations. 

But, I understand since I'll be conducting business in New Jersey I will be still be paying state taxes in New Jersey. 

I'd be interested in hearing from both CPA's and Real Estate Investors on this topic.I'm conducting a search for a personal CPA who specializes in REI.