The Tax Code and Treasury Regulations leave a lot of issues open for interpretation, which creates lots of gray areas. 

@Benjamin Andrew Pogue  Let's interpret "optimal" and "sweet spot" to mean:a) you can find one fairly easilyb) you can rent it fairly quicklyc) it will cash flow and the likelihood of you losing money is lowWith those assumptions, your best bet is 3/2/2 in a subdivision where it is easy to determine value (After Repair Value based on comparable sales AND likely rent) and where home prices are 50-80% of the median home price for your area (working class neighborhoods). 

I am clear on this.24.04 (b) My interpretation of (b) below How much does this mean.

Since the mortgage is in my personal name, but the mortgage payments are made out of my business account, could this be construed as commingling liabilities and potentially be interpreted as piercing the corporate veil in case of litigation? 

"Final interpretation of the R&Rs rests with the Board"I may have made the mistake of believing that if I was in compliance with the R&R, I was in the clear. 

@Scott Pigman One of the problems of using articles, and other interpretation of facts is the "take aways" are usually screwed by the author or sources own interpretation.Having said that, when in doubt, I ask someone that is actually doing what I'm thinking about doing.  

The tax implications are subject to interpretation by the IRS come tax season.

I agree with Greg wholeheartedly but I just want to make sure you aren't interpreting what he is telling you the wrong way.

Well said.My guess would be not many of the folks who think the money should be kept in this situation have been involved in more than 25-30 landlord tenant disputes.The laws and statutes are interpreted by judges folks.

If I'm interpreting your question properly it sounds similar to what we do in Cali.