The 2-4 units are under Conventional Loans and with that, the regulation is "no part of the down payment can be from borrowed funds".

You do not owe applicants anything unless your state regulations indicate otherwise.

Taxes, accounting, business licensing, and other regulations will be a bigger issue then if you are an LLC or sole proprietor.An LLC is a good idea to have, but it is not a deal breaker to get started.

So for future appreciation, things need to be up to code and meet all local regulations. 

Does anyone have a good clause in their tenant rules & regulations for handling these problems that they can share?

Types of Mortgage Lenders (more flexible compensation regulations)- Mortgage Banker(Non-Delegated a.k.a.

Defined as below:In the United States, to be considered an accredited investor, one must have a net worth of at least one million US dollars, excluding the value of one's primary residence, or have income at least $200,000 each year for the last two years (or $300,000 combined income if married) and have the expectation to make the same amount this year.[9]The term "accredited investor" is defined in Rule 501 of Regulation D of the U.S.

Get a license is easy and very necessary to know the basics of rules, laws, and regulations.

Thanks for the link Terence, it looks like there are some regulations to owner builders. 

I don't know about local regulations in Miami but do know that Airbnb is very heavily used in Cancun.Mike