I originally purchased this 2 bed / 2 bath single family home as owner occupied since I qualified for the down payment assistance program for first time homeowners.

@Eric Amundson, You can't do a 1031 exchange into non-real estate passive investments because it has to be investment real estate for investment real estate.However, there are syndications that do qualify for 1031 treatment because of how they are structured, such as UPREITS (Real estate investment trust), or DSTs (Delaware statutory trust).

. — your liability coverage might get murky.You might also bump into local zoning or occupancy restrictions, depending on your town.What you can do:Add a clause in the lease that limits total adult occupants.Ask the caregiver’s agency to provide something in writing — maybe a letter confirming they’re licensed and insured, and that this is a formal care arrangement.Spell out in the lease that the caregiver's responsible for all occupants, even if they’re not on the lease.Also might be worth double-checking your insurance — make sure you’re covered for this kind of setup.Would I Rent to Them?

In times of expensive money, formally small concerns loom large.

Best I can determine there is no formal "human" review of any of this nonsense.To mitigate exposure, when I post an ad, I include the following:If interested in setting up a viewing, please message me for pre-screening questions sent via email.After they, respond I send them a list of my pre-screening questions via Messenger, and end with:Please send your responses directly to my email, below.

Hello, I am new to being a landlord, and my tenants just moved into a beautiful new construction home, with a backyard that has not been formally landscaped.

A property you intend to flip but just happen to hold for over a year does not qualify for long term gains. 

You're likely not qualifying for real estate professional status unless you have a non working spouse.

I reached out to my realtor asking her input and was informed i would need to qualify to see how much buying powers i have.

Getting pre-qualified or having a lender relationship in place will give you clarity on:(a) What size/type of deal you can realistically pursue(b) What kind of down payment and reserves you’ll need(c) Whether you need a co-sponsor or key principal if you lack experience(d)The loan programs available to you based on your profile