Your accountant should be able to inform you about the applicable tax rules.If you're the D-I-Y type, I recommend endless reading and researching about tax rules and interpretations. 

I do not want to make any interpretations myself since I am not trained in interpreting these documents but my laymans hunch is that you are correct.  

Remember, having a LLC has no tax advantages.I think you mis-interpret Jim's experience. 

She is willing to live with you in a trailer and from my interpretation that means she is in it for the long haul.

Like Tax or RE law, you can change the facts/context to change the consideration or interpretation of the guidelines.The key is vacating your NC first, go rent (maybe 6 months lease + m2m after), then shop and buy after that 6 month mark once you have 6 months of rents received on NC.This would make it a very solid scenario for an underwrite to approve if you need to use rental income offset on your NC property.

Nobody buys anything in %, the do in "actual" dollars.Also, the % rules come from the "paper" market (interpret that as you want), and shouldn't be brought into the REI world.  

If there's one thing I've learned is that if you dwell on the narrow interpretations of state and federal law, which often contradict each other, you'll never make any money.

Leaves a LOT of room for interpretation.

You make one interpretation, the seller makes another and then you argue about it when it comes up.

If you want a project, as Brian interprets what you meant by hobby, then do everything he says.