This is basically the governments way of making sure that since your plan doesn't pay taxes, that the playing field is level with other businesses so you aren't able to undercut the market.

Is there potential for appreciation or is this a strict cash flow play?

This could work to your benefit or not, depending on how play your cards.

How you treat the home definitely plays a big part on taxes, but as far as the loan goes, read the docs.

They have room to play with numbers.

I played around with the numbers and it's looking a lot less attractive.

To clarify for folks playing along at home...there now two versions of a Regulation D 506 private placement.

But, it could be something else but it's still a second home.I get the idea, from what's said, that she can terminate here lease due to his orders, so it does sound like she is playing the system.

Last but not least, a bull market in housing brings into play a lot of people that do over pay.

After the mold scenario plays out and the boro's inspection is complete I will follow up with another full inspection from my inspector.