Lower taxes, no POS and lead testing. 

@Stephen Fleming your cashflow probably won't be what you think it will be:(Have you factored in the new property taxes at homestead millage rates?

You are looking at the rent of $2,000 and mortgage (Loan, Insurance, and Taxes) of $18000 and thinking you have $200 cash-flow.

How would this be accounted for for general accounting and taxes?  

Consider using an FHA loan to secure a 1–4 unit property with just 3.5% down and take advantage of tax benefits by living there for at least two years.

There may be something called a "Due On Sale" clause.Check and see if all tax parcels are included in one mortgage or if they have separate mortgages.You have to have him spell out what he considers to be a "partial seller financing".

But with all the syndicators out there NOT all but many also getting stuck with their deals needing to recapitalize because interest rate rise and tax's and insurance rise was not planned for or contemplated these are legitimate actions to take to protect the greater good. 

We're right next to CA but get the benefits of no state income tax, 4th lowest property taxes, much more friendly landlord/tenant laws, no serious weather, proximity to Lake Tahoe, stable job growth/population growth, etc. 

Have you passed the tax assessment yet, or is this your first year of owning it?

How do we minimize taxes on the profit we're making on this first home?