I have two added wrinkles, a consulting business P&L, and reimbursed expenses associated with a W-2 job.  

Also, depreciation lowers your basis, so plan ahead for recapture or a 1031 exchange down the road.One wrinkle: if you ever add a short-term rental and materially participate, those losses are treated as non-passive even without REPS.

would the FLA licensee then have to take the national test and register with NMLS Oregon and NV are the same as this..and Account Closed  I don't think your friend can be lending a lot of money or lot of deals without a RE broker license or CFL as Jeff stated.. you cant be doing any volume and not have one of those licesnes pretty sure.. when I had my HML company in Oakland I ran it with my CA brokers license.NMLS has thrown a wrinkle into this following dodd frank I think there are 12 states that have the same rules.

They shrink and wrinkle plus they trap stains.

@Nicholas Aiola - To put a wrinkle on Maryanne’s question - this past year, my spouse and I purchased our first home, a two-family where we live in one unit and rent the other.

I’m planning to live in one unit and rent out the other, so owner-occupancy is a must for my FHA loan.One side is vacant — the only wrinkle is that the tenant on the other side has a lease that runs until July 2026 (about 8 months out).

I would recommend focusing on finding an attorney that specializes in partnership disputes and commercial litigation, though of course make sure that the attorney knows of the wrinkle and represents the SDIRA and not you individually. 

A helpful wrinkle is that roughly half of the building’s total rent comes from the residential units, which makes financing straightforward with better leverage.

On top of being non-warrantable, one other wrinkle is she qualified for the mortgage based on assets (asset dissipation/depletion loans) instead of income. 

Only one wrinkle in your plan.