You may find that you have " squatters"- not legal tenants, low rents-or real reasonable people glad to pay more for better services.

Brice Noonan one thing to remember is the "rules" are not rules but guidelines.

However, we need to wait for clarification of the interpretation of new legislation passed last year that might allow such advertising within specific guidelines.

I have a legal background and have quite a few practicing lawyer friends - that portion of my "team" so to speak is great.

Great point and what I would have stated.William Bannister - I hear what you are saying, however, keep in mind that you still have options such as pulling funds before the age of 59.5 so long as you do so under the guidelines.

I wonder about these guidelines like the 50% rule, I don't see how that can apply equally to situations where landlords pay water/garbage/sewer and situations where they don't.

How is this legal?

Not much, but thanks to the posts here, I stopped making projections and started figuring out what actually needed to be done to be legal when asking other people for their money.

Obviously, I'm not a lawyer and am not giving any legal advice.

I’m still getting up to speed with real estate taxonomy, so I will need some time to digest the info, but it sounds like the easiest (at least from a legal and tax standpoint) is to start the LLC first, then get the loan.