Hey @Preet Oberoi, so a tiny home like you are describing isn't real estate but more of an RV.I would get with a CPA like others have said to get the skinny on the deductions.

My market is similar to what you are describing and I too see signs of a suckers rally and reminds me of 2004-2006.

Could you describe the Process or Deal Analysis or execution that failed on this deal?

You need to learn how to analyze property and determine if they are a good investment.Here's a guide that describes how to analyze a property.https://www.biggerpockets.com/blog/rental-property-cash-flow...

In construction your plans are your Bible, so you need to know how to locate any discrepencies, locate answers to questions froms trades, understanding "Take-offs" with your materials, and be able to visualize in a 3D space what the plans are describing.

No way is this a scheme to keep EM for the seller..Anytime I have had EMD disputes it usually gets solved with a 50 50 split since I know what will happen.. what happens is exactly as you describe.. money is to small to realistically hire an attorney to collect..

I mentioned it to the people above, but they said they’re not running around like the person below is describing.

I'm just describing the reality of BTS with national tenants, they squeeze margins of the developer down.

I'm not sure I would get to cute trying to squeeze every time out of it now with a lease that might cause you issues in the future, but the scenario you describe is common and probably smart. 

This would defeat the triple tax savings @Kaaren Hall described above.