Not that it cant or wont, but unlikely.If OP applies for homestead on a new property, then I personally would not lie during the application about receiving the exemption on the existing property.

Not talking about you personally.

Dumb question - but are these auctions online only, or in-person? 

Yea this is a long-term personal play more than a strict STR deal. 

I am still personally buying rentals but I am not expecting much in the way of cash flow at the moment.

I’m not a former IRS person.

The flippers we personally work with in California have not run into this issue (as far as I'm aware).

Code § 1343 - Fraud by wire, or commits unjust enrichment, or violates 18 USC Ch. 47: Fraud And False Statements, or perpetrates a foreclosure rescue scheme, or takes advantage of "protected person" or violates the Dodd-Frank law and/or the S.A.F.E.

This will allow you to remove the person and do the financing on your own.Home Equity Loan/Line of Credit: Since you're looking to access equity, a home equity loan or line of credit (HELOC) can be a good option.

Gator most of the risk is on the person providing the earnest money.