If so you need to fall into the guidelines (for the investor whos funding it) regarding non arms length transactions.The most common scenarios they typically prohibit are:- Gifts of Equity- Bailouts- Leaseback OptionsAt the end of the day it needs to be a legitimate transaction, with legitimate funds coming into close.

.: @Nathan Gesner   Hmmmm....thanks for asking....i thought there was a law change quite a while back, maybe over 10 years ago, which prohibited smaller landlords like me for getting SS#s. 

Texas does have specific rules regarding home equity loans and cash-out refinancing (often referred to as "Texas Equity Section 50(a)(6)"), but these don’t prohibit homeowners from using funds for investment properties.

In Illinois, when an agent does that, there are functions normally expected of the realtor that they are legally prohibited from doing.

She's not going to have any leg to stand on in court if you get that far unless there's some explicit language prohibiting the owner from assigning responsibilities to another legally authorized party, and I'm guessing there isn't if another PM company was maintaining the lease and provisions - and the fact that the tenant was voluntarily working with the other PM confirms the acceptance of an authorized agent even if it's not explicitly stated, the same way if you accept rent from a tenant after a lease expires you imply acceptance of the lease terms continuing (which is why you should always have a holdover provision). 

Most banks/credit unions have clauses that prohibit borrowed down payment funds or seconds on the property. 

Federal Laws Prohibit Discrimination of 7 Protected Classes, Massachusetts has added 8 more:-02.Always know more of the Rules/Laws/Regulations than ANY Tenant.

In fact, New Jersey law prohibits you from listing personal identifiers on the form. 

For most investors, to provide true separation would be cost prohibitive (between $10k-$15k). 

That is likely cost-prohibitive.