I use TurboTax to do it, but if it's your first time, you'd likely want to hire a CPA to accurately report everything.I don't know for sure, but I would assume if you reported the income on your taxes and you had no fine print in your FHA documentation preventing you from renting out rooms, then you should be fine to use that money for another property.

I believe it's generally better to get as much loan as possible and save cash for opportunities, but in my case, DTI may prevent me from taking out another mortgage, so I'm thinking if I can't secure a loan, I'll pay it off and take out a LOC on it for future opportunities.Pros: No interest incurred while there is no opportunity and cash doesn't have to just sit in the account.Cons: Bank may reduce line based on market condition.

If you don't want a party house, develop policies to prevent that.

Stop worrying about things that may or may not happen, try to find ways to prevent them from happening, and deal with them if they do happen.

Is there anything preventing you from becoming an agent, it really is not that difficult?

So I reached out to him saying that I'd rather give it for full transparency and to prevent something coming back and nipping me in the butt..

@Andrew Hamlett what is the tax issue and why is it preventing you from starting rehab now?

It prevents the Ill try to sell it off MLS so there is no buyers agent commission business structure.

The filing of a lis pendens notice about the pending lawsuit may even prevent other owners from being able to sell units in the building, which may get them on her side too, putting pressure on the Association to take corrective action. 

Classifying as owners draw will prevent it being accidentally deducted as a biz expense.