The desired design program for each building is as follows: Unit #1 at First Floor and Cellar levels- First floor to contain a small bedroom, a bathroom, Kitchen, and Living Area.

You're looking at ordinary income rates and, possibly, self employment taxes.

The problem I ran into with the first bank (and confirmed by the second one who returned my phone call) was “to consider any income from 1099 self employment I would need a tax return for the past two years, and they would average the amount.

Every VA Loan Lender has their own overlays that they want their applicants to meet to qualify for the Loan so make sure you shop around.

I'm neither a lawyer nor an accountant, but I recommend Googling "closely held corporation" and then asking your tax accountant how, if any, the proposed idea might impact your overall tax situation (https://www.irs.gov/faqs/small-business-self-employed-other-business/entities/entities-5: A closely held corporation is subject to additional limitations in the tax treatment of items such as passive activity losses, at-risk rules, and compensation paid to corporate officers.).I've read that when two closely held corporations owned by the same small group of shareholders do business with each other, the IRS sees a red flag because some people try using this approach to evade taxes.From my readings of personal finance articles, this additional scrutiny is based on whether there is an "arms length" between the two parties in a transaction. 

Do I need to require his parent to fill out an application right now?

Hello,I’ve had some clients interested in investing in a syndication using their Self Directed IRA, and the following came up that I’m very curious about - your help would be appreciated.

Hello,I’ve had some clients interested in investing in a syndication using their Self Directed IRA, and the following came up that I’m very curious about - your help would be appreciated.

Have you looked at deals in those areas that make sense to you and how funding (have you talked to lenders), repair, (do you have contractors you have talked to within those areas) manage the properties (self-manage/ hiring management) ?

The lesson learned is that you must, must, must properly screen the applicant.