I've had bad and dishonest PMs that cost me well over 100% with under the table repair kick backs, selecting bad tenants that don't pay and trash the place, workmen stealing anything not bolted down like window treatments, etc., and mediocre ones who regularly ran 25% when it is all said and done.

It's also kind of a moral/ethical question-- why would you put someone in a house you know is unsafe, especially if you think of kids?  

Investor with license, you now have a code of ethics that guide your every move. 

I create the inventory that they market to their clients and it is often a challenge to find the deals that work for their required returns because the ethical companies aren't trying to market overpriced properties to their clients.

Depending on type of construction, routine interior pest control for roaches and sometimes ants; and termite tenting or ground treatment at recommended intervals with inspections in between are all pretty common.

So here is my question: Is it legal, ethical, or even possible to owner finance a property that you don't own 100% outright?

If the home otherwise qualifies for section 121 treatment the taxpayer can exclude capital gains on the prorated portion used as a personal residence.

If the agent is doing a lot of business and has enough clients, you wanting special treatment and wanting to have deals handed to you isn't going to make them jump at the opportunity.  

These are professionals with additional training and a stricter code of ethics.

I paid an attorney-friend for an hour of his time 2 years ago to verify that my contract, my assignment agreement and my discussions with sellers and buyers were legal and ethical.