Fannie/Freddie (Conventional) loans aren't just about rate and transfer taxes. 

.: Hi All,Is there any way to structure a private lending arrangement so that income is considered passive (by IRS standards) and can offset accumulated schedule E losses?

Hey Mike I wanted to know if I wanted to seel you my home with seller financing and I  wanted to transfer title to you the buyer. unlike contract for deed WHAT is the instrument they use in Wisconsin.

Hopefully your lawyer also mentioned insurance- title and hazard.A quitclaim deed transfer can hurt your title chain and title insurance. 

So if I was dealing with a seller who was insisting on handling the transfer this way, I would be wondering what the seller is trying to hide... and I would figure it out.

Overall, my primary goal is to create the opportunity to get into another home at minimal cost while keeping my parents in the current home, so I'm leaning toward transferring/selling the current property to them.

@Chris Rendall couple comments,@Wayne Brooks is correct if it was a Homeowners policy now being transfer to an LLC and used as a rental. 

Upon her passing, the 401k interest was transferred to me into an inherited IRA account at the same servicer.

The commercial loan should go on your personal Sch E of your tax return too, if the property is used as a rental, where the mortgage interest paid will show.

HEY GUYS JUST WANTED TO KNOW IS IT POSSIBLE TO GET FUNDING FOR A LIVE IN FLIP IM CURRENTLY ONE SIDE AND WOULD LOVE TO REHAB THE WHOLE PROPERTY I GOT IN USING FHA ! CAN I USE A 203 TO FUND THE REHAB??