Whether you or your parents own it on paper, your fees and expenses can be tax deductible as business expenses, and if yo’re in the paper, you can often still get approved “residential” rates and down payments if owner-occupied.

So if this went to court and you lost (which you would based on the info provided) you will have to pay a hefty penalty, plus the resident's attorney costs and court costs.  

Unfortunately, my experience has been that the options are limited without paying high fees.

Does anyone know of any brokerages that don't mind hanging investor licences with a reasonable desk fee or yearly fee? 

It may just be a simple fee, if you even need one.

Especially with condos, watch out for the condo fees. 

Even the tenants take it to the small claim court, she needs to spend at least $50 to $100 filing fee plus many of her hours.

.% down of the purchase price and the rehab costsCan be used for primary residence with 1-4 units (could also be looked at as a disadvantage)  When using 2-4 unit property, projected income from other units can be used to qualify 6 months' worth of mortgage payments can be rolled into the renovation budget if the house is deemed uninhabitable by the HUD consultantCredit scores can go down to 600s (lender dependent) DTI can go to as high as automated underwriting system allows (typically 56.9%)Allows you to buy a property in any conditionCan use it to fix minor repairs all the way up to basically a full tear-downFHA 203k Disadvantages: Interest rates tend to be about .25-.5 higher than regular FHA loan Additional costs include HUD consultant fee, inspections, title updates, and supplemental origination fee (Cost of doing business, but this is built this into your numbers, so it's no big deal)Must use a licensed General Contractor for a full 203k or up to 3 specialized contractors on the limited 203k Must hold onto the property for 1 year and live in it. 

Sounds like a FRAUD AND SCAMMER.Many legitmate lenders, private or HML, may not ask for advance fees with the exception of an appraisal.

Happy to pay a origination fee and interest or split the profit as appropriate.