The more you listen, the more you engage in conversations in this industry (networking)...the more comfortable you will be moving forward on something with the opportunity presents itself.

I have to have this conversation with my CPA as well. 

@Trevor BozichPartnership items between you and your mom should be reported on Form 1065.

I look forward to continuing the conversation. 

Or because they can't find any paper trail for the conversion of a single to a three family then is the current use of the property in violation?

3/5/2019Sherelle – thanks for the post / questions and outline Fyi – there are some conventional loan programs that allow a 3% down payment ….I would recommend using this program versus a fha loan program if possible …this is because with a FHA loan the monthly mortgage insurance remains with the loan permanently and with a conventional loan – you should be able to eliminate the mortgage insurance in the future ……Also – if you use a FHA loan for the first home - using a FHA again for next property might be an issue …..you allude to this in your question #2Regarding cash flow analysis ….other items to factor in : utilities / property homeowners insurance ( this will be a little higher when you live in home and should decrease a bit once you convert it to a rental policy / are there any deferred maintenance issues on the house ( roof / furnace / water heater / foundation are the bigger tickets items to watch Definitely get pre approved so you know for certain what you can afford and also so you can begin becoming more familiar with the numbers …we can assist with this if you want - contact us Thanks and I hope this helps Dave Skow 

(I live in SF, CA).I found a property I like, but the inspection report just came back with a lot of items.

It sounds like you've done some nice stuff to make the house better for you, and you've taken care of some maintenance items (sump pump, water heater).

It was a 1 on 1 conversation with a rather nice state employee .

They can be very picky on seemingly innocuous items in the house that youd need to fix.