Your goals will define the route you take on this but building a list for buyers/investors is a time-intensive activity and the list is a living and breathing document.

Quote from @Aaron Zimmerman: I would look for other ways to legally reduce income such as cost segregation studies.

And not just in our contract the title company sends a mutual release document of their own that both parties have to sign..

An LLC is useful for two things: anonymity and legal protection.

I'm not a financial lender or whatever the legal term is. 

At the time, it never occurred to me that if you want to swindle people it is difficult and expensive to take legal action against a company that is incorporated in a different state than where they do business.

- FYI: it's only illegal to try to rent it out, the property owner can usually legally live in a nonconforming basement unit.If you do all this you may still negatively cashflow each month, so make sure your income can cover and/or your cash reserves.If you do this successfully, you will learn more in 1-2 years than you would reading here on BP for 5+ years:)Good luck:)

I am no professional here, just explaining from my experience.. first, insurance starts claim and they send adjuster out to assess, check damages, and collect documentation.

These accountants believe that purchasing from a related party is fine as long as it is an arms- length documented market-consistent transaction.   

Legal violations and penalities(fines) even if you have accounting software to track the difference.