That is the exemption that I believe will pertain to you. http://www.ncleg.net/EnactedLegislation/Statutes/HTML/ByArticle/Chapter_53/Article_19B.htmlInformation only.

Our opinion:  the weight/consideration that should be given to assessment is timing (i.e. when is the next assessment going to happen); any changes in assessment methods that a State/county is considering & exemptions that will not be applicable to an investor.  

While you may be exempt from the DF Act, you are still subject to predatory lending issues, too much financed, over priced property, borrower placed in a position where they can not perform, lacks ability to pay, and other matters may apply.

Weigh the risks of collecting your payment, there are exemptions for small note portfolios.

It's eggs in a lot of baskets instead of one, and provides income while still maintaining equity and tax advantages.Lastly, if your Dad hasn't reached the maximum lifetime exemption, he may be able to sell this home without having any taxation on it if he has lived in it 2 out of the past 5 years. 

So if you move to HI say March of 2017 you could rent the property for two additional years and still qualify for the exemption of sec 121.  

If more than 2 investors are in the deal then usually an exemption should be filed with the local state unless all the investors have created a LLC to take down the deal. 

I think this latter constraint was likely added to further discourage people from using the exemption. 

Oregon would also frown on this.. and in CA if you don't have a brokers licesne or NMLS you get hammered as well. private lenders are NOT exempt and you certainly are not brokering the deal you have much more liability since your brokering with out a licesne...

Today until there's case law:  it's fuzzy to some, the gurus are saying do as many as you want and I feel doing just 3 per year is safest AND using a LMLO even though the 3 per exemption makes it sound like you don't need an LMLO (unless high expense loan etc).