So essentially, you can't move out and then rent a house by the room.

However, the remaining gain not covered by the Section 121 exclusion is taxed at your ordinary income tax rate.Here's how the calculation typically works:Calculate the Depreciation Recapture: The $9,000 of depreciation would be recaptured at a maximum rate of 25%, which is $2,250 (25% of $9,000).Calculate the Remaining Gain: Subtract the excluded amount (Section 121 exclusion) from the total gain: $100,000 (Total Gain) - $9,000 (Depreciation Recapture) - $250,000 (Section 121 Exclusion) = $0Tax the Remaining Gain at Ordinary Income Rate: Since the remaining gain is $0, there would be no additional tax on the gain.So, based on this calculation, it seems like there should not be any additional tax owed after taking into account the Section 121 exclusion and the depreciation recapture at a maximum rate of 25%.It's essential to review your calculations and ensure that you are accurately applying the exclusion and depreciation recapture.

Often when I work with real estate investors to create asset protection strategies, most tend to prefer a simple asset protection structure (something low-cost that does the job essentially).

There's essentially no LTR market as it's in the middle of nowhere and the town is pretty picky about keeping property values up so you don't have a bunch of trailer parks or apartments. 

Its essentially the same as a reverse mortgage.

Of course you will see how that compares to the wholesalers, but essentially you need to have the knowledge to be able to compare.

I know less than nothing about new construction loans for duplexes, let alone how to operate up there, in what is essentially a Pennsylvania suburb of Youngstown, Ohio.

Which means you can buy and control a $100k for $20k essentially or whatever your bank will allow you to do.

Some building insurance companies may not allow this because it is essentially free rein on use of the property. either way, do what’s best for you.   

It's essentially a 4 bed / 2.5 ba SFR semi-attached to a five room motel.