I feel that my client was not properly represented. 

Hey BPers,I am designing a strategy for tax-deferred savings that builds current cashflow and could essentially function as an alternative retirement or FIRE strategy.So...here's the strat in a nutshell:1.

(Afterwards he went hiking close by me in the mountains) He was thorough and knowledgeable and explained to me that while half of my system was used up if I fixed what was going on with it using a regular septic company it should last another 20-25 years because it would begin functioning properly and the full side would recover partially and be somewhat usable to work in tandem with the other “good” side again.

if repairs are not made or the COC is not obtained in short order you can lose the rent as well.Hiring a lawyer is a waste of money at this juncture and you should put all of  your resources into fixing this home up, getting the COC and do things properly. 

That's a very interesting point about the price of the home making it harder to BRRRR properly; that's not something I would have considered, so I greatly appreciate the input!

Then the most important thing to me is proper conveyance. 

Only legal way to do it w/o getting a license is to find someone with the proper license (agent or broker, be sure you know what the state requires) and they become the principle (generally) broker of your new PM company. 

@Eric MillerThe IRS does not care about the loan product that you have.The IRS just wants you to properly classify mortgage interest as a Personal Residence mortgage interest (Schedule A) vs Rental Property Mortgage interest(Schedule E).Best of luck! 

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

We refurbished aspects of the home and properly marketed for rent What was the outcome?