Long term Rental, Principal Paydown, Cash flow and AppreciationLessons learned?

Recasting generally means making a lump sum payment to principal, which is an effective way to reduce your monthly payments. 

For individual taxpayers selling their principal residence, the IRS does provide an exemption up to $250,000 of the capital gains for single filers and up to $500,000 for married couples filing jointly.

I check the SEC, FINRA, ratings websites for inside information on the principals in the company.

I currently occupy the principal room, leaving two vacant rooms.My plan is to rent out one of the vacant rooms to someone I know, but I'm seeking advice on the tax implications of this move.

We optioned it for 5.5 million and each annual payment is 100% goes to principal so no interest carry at all.

The money you make on renting-by-the-room could go towards paying down the principal....OR.....you could put that money into hyper-growth mode by investing it into say, an ETF.....regardless of which path you choose, you will soon have paid-down the principal and have that 20% equity that is needed to eliminate the PMI. 

The bill would double the tax exclusion on the gain from sale of a principal residence and require future annual inflation adjustments to the amount.

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property. 

The property just needs to generate enough income to cover the monthly principal, interest, taxes, insurance and HOA (if applicable).