Now I'm not a CPA or tax attorney so this is just my understanding, please consult with appropriate professionals but if you were to live in it as your primary residence than you should be exclude from long-term capital gains up to $500K  (for a couple) of profit when you go to sell it, not sure what your intention was on length of time that you two would live there or desire to sell it down the road.

I'm curious to know, at what point do you decide to only bring on a few investors and make them part of the GP to avoid the costs for SEC attorney/docs?

But there may be exceptions and some states have varying rules, although RESPA is a federal rule.See here:  https://www.cresinsurance.com/what-to-know-to-avoi...https://www.nar.realtor/ae/manage-your-association...I would suggest speaking with an attorney in your area to ensure you are in compliance with RESPA.

If it is indeed included in his bankruptcy but he was interested in selling it should I get in contact with his bankruptcy attorney?

As the seller, I've been notified that the house appraised for the selling price, no but never received the appraisal itself.Again, neither of us are attorneys but I'd be willing to bet that there is no burden of proof here. 

(ie: RE attorney, Property manager)Anything else you would like to add that is relevant to the subject, by all means feel free to do so!

(ie: RE attorney, Property manager)Anything else you would like to add that is relevant to the subject, by all means feel free to do so!

Often an MLS or attorney-vetted brokerage form for Seller Occupancy after Closing may be sufficient, and your real estate agent should be able to help you fill in the blanks. 

Local Multifamily Brokers, Attorneys, Lenders and Property Managers.

However, you don't know what the prior owner had agreed to in writing with them, so it is likely best to have an attorney handle it for you.