I hope to be received with open arms and open minds.

If you own the property in your personal name as opposed to an LLC if you receive a fine it will be substantially lower than the same fine given to an LLC.

Rent existing South Pasadena home for around $3000 to support new mortgages and home equity loan paymentsRefinance new properties after a few years to pay off original home equity loan (at least partially)My partner and I move into original South Pasadena home after a few years to take advantage of good public schools, while the in-laws receive income from now fully-rented multifamily.ProfitIs this naive? 

What documents do you two sign?

Is there a very easy to read document that outlines line by line what items from the HUD-1 are deductible vs depreciated vs ????

./104th)Purchase and sale agreement, with a standard escrow.Escrow closes upon date certain, or when the city issues unappealabel entitlements, zoning etc.DD of some period, 30, 60, 90 day, with some non-refundable upon reaching this date.Reason to do it this way is you have a solid contract, if and when you receive zoning, you can close without question.

These are common (and expected) documents requested during due diligence. 

He is an investor himself and understood exactly what I was talking about.After we received our approval letter last week, I emailed him about a possible construction loan with his institution and his response surprised me.  

The money you received from C is used to pay your lender back plus their fee.

I am not sure how well it will be received if I tell them that I don't really intend to use their service (since I am thinking of managing them myself for now), but just looking for some information.