Wouldn't that kill the entire purpose of what I'm doing?

Compare apples to apples and listen

For educational purposes, can you tell me what is wrong with the uploaded one?

For doing commercial/ business purpose loans (secured by real estate ) is there any guide available on Dept of Business Oversight or any other place to conform to The CFLL - California Finance Lenders Law?

One other thing that is appealing to the current owners is getting a decent rate on the notes they would carry, compared to the fixed rate products that they would be likely to put their money in such as CDs.

How would your rent compare to the going rents in the area?

Simply by doing a drive by and running comparables this house completely redone can be moved for a easy 175k-200k.

The exclusion is reduced pro rata by comparing the number of years the property is used for non-primary residence purposes to the total number of years the property is owned by the taxpayer.

But as a heads up make sure your HVAC guy gives you ALL the paperwork & that the new fce & A/C units are registered for warranty purposes.

[Granted, I don't know how you are creating the splits for tax purposes, but an issue could happen on the income or the expense side of things.]