I imagine a lot of people that sold sub2 got screwed in that mess.  

The unit exams have been easy but I imagine that will not be the case for the state exam. 

Judging from this i would imagine its a subject to  strategy.I would love any feedback, advice or additional strategies you may have Thank you

With paper losses, tax deductions and appreciation, imagine the numbers a year from now?

Right now the plan is to accumulate enough passive income from rentals to live life on my own terms - I imagine that this means 25-30 properties.

It can't imagine it making any sense in your case, it's for basements/below grade rooms, although I am sure there are always exceptions.

Theoretically, I would imagine that the ability to purcahse more than one home at 5% down could stack up enough to have you coming ahead vs 25% down on one house.Thoughts?

I imagine they don't care one way or another what type of property is being served rather their more concerned with the signor on the account.If you want to use an entity to create an account then they will more than likely require you to create a commercial account.Banks work the same for checking accounts, credit cards, loans, etc.

An issue here is that being new to the industry, my imagination for possible scenarios leaves something to be desired (and hopefully something I can improve on in this forum).

You put your friend in a rough spot as I can only imagine that your friend was well aware that your girlfriend and her mom were living there.