If they are in foreclosure at the time you buy the property, that business model is against the law.

Partnership tax law allows very flexible income/loss allocations. 

According to the law Qualified Opportunity Funds (QOFs) can be established to channel investment into businesses or development in these under-capitalized Opportunity Zones, mostly in low-income or transitioning areas.

Alternatively, in my state, my attorney has advised that even if a tenant were to make a partial payment to my account, I could still refuse the partial payment and return it to them and proceed with the eviction (consult with your own attorney on the laws for your state).Overall, there's nothing inherently bad about tenants having your bank account number and it's a viable option for certain tenants, like the ones who don't have bank accounts. 

Yes it is a Multi Family house Hack I live in the main part of the house they live in a attached apartment. check your city or state laws  but federally if your owner occupying you are exempt from federal fair housing laws. 

The title company generally knows the particular state laws better than we do.  

My TX RE Broker has never heard of this law and I cannot find anything on the Internet about it?

We are certainly not looking to break any laws or be subject to tax penalties so I was wondering if there are any issues we may run into there.

If you remain resident in Canada, in augmentation of Eamonn's advice, I would suggest you consult with a CPA - and possibly attorney - experienced with Canadian tax law and business organisation when holding foreign assets.Having your U.S.A. business (and assets/properties) be held and operated within a U.S.A. corporate entity will provide you with control over the repatriation of retained earnings.  

My father in law is a general contractor and I plan to use his help throughout this process.Originally posted by @Jonas Mai:more points to add... once you get in the middle of a claim for yourself you will gain experience that IS very valuable for anyone with property (experience probably worth more than the10-20% your PA will take along with your chance to learn) .