If you're testing the waters, just buy adequate insurance to protect yourself until you have a proper legal structure.

Let your son spend the money, time, effort and resources to hire superior legal counsel and negotiate an acceptable solution.

My question is whether or not this is acceptable, seeing as how I would still be gaining equity in the house per month, while taking what I would normally be paying in rent myself and putting it in the bank.Does anyone have any experience with this situation?

Repairs-  You cannot modify the property in any way so with some utilities requiring inspections before service can be initiated, any required repairs cannot be doneYou can have an inspector do a visual inspection and have a plumber do a pressure test which can identify some issues

A summary of the changes can be found here:SEC Staff Recommends Updates to Accredited Investor DefinitionWhat's good:You can now take a test to qualify under the proposed rulesThere seems to be some critical thinking about the thresholds and indexing them to inflation instead of picking an arbitrary number and leaving it staticThere seems to be some critical thinking about who can invest whatThose with experience in private deals can exempt outWhat's bad:It seems hard for portals or funding platforms to implementWealthy investors are capped unless they make over $500k annually or have $2.5M in net worth

There are certain lifestyle changes all of us are willing to accept to get a more prosperous future.

But if they exited without issue I would accept them.

Naturally it depends on kind of actual project from just better house to luxury unique house if this is acceptable for this location.

Standard depreciation is where you depreciate the value of the house (minus an estimated value of the land) over 27.5 years.Accelerated depreciation is where you break up the key components of the house (i.e. roof, floors, windows, hvac, etc) and depreciate them over the IRS' acceptable lifespans of each one.  

I would also check to see if your state has any minimum maintenance intervals in addition to to the required annual fire service fire and load/no load testing requirements.