And it may be worth it if paying off the other loan frees up significant cash flow in reduced mortgage payment.2.

IRS audits and penalties: Studies that are poorly conducted may be full of unsubstantiated assumptions and errors that can lead to expensive audits and large financial penalties from the IRS.Long-term issues: Dealing with IRS audits and having to correct inaccurate studies can be a drawn-out, stressful and expensive process.

Owning a home is a life goal, regardless if it financially makes sense. 

Should I recommend a lawyer to my client to assist with the financials and license / permits or is that not necessary?

You'e going to financially bleed to death...

This has numerous implications should the buyer not make payments, or the loan be accelerated.2.

What kind of loans do you provide?  

If I use my FHA loan, after a year of living in the household, can I convert my FHA to my LLC and still reap the benefits of that 3.5% down payment? 

Purchased land with $120K down, $50K land loan.

I try to copy the type of structure thats working (changing the elevation) and use those as comps when I go to use a DSCR loan on the back end to pull money backend.Knowing what strategy you are going for would help me direct in a more accurate way.