Asking in the correct forum will get a better response.Read the RULES!

@John ClarkYour math is not correct.2.25 x 2 is 4.5%

Quote from @Cody Caswell: Quote from @Bruce Woodruff: You're correct that getting every detail involved right from the start is critical!

So if I’m understanding correctly, if you sell your home within 2yr of purchase, you don’t have to pay capital gains taxes? 

Then being aware of the complexity of structuring the property correctly for long-term goals is important.

If the question had the word "animal(s)" in it, you answered it correctly.

Most who get tripped up are those buying the smaller multi-families that don't possess the correct use permit/historical rental license activity. 

Budget these carefully into your overall project plan to avoid surprises.Rehab Budget: Ensure that bids are received from multiple contractors and that adequate reserves are made for cost overruns.ARV: Be conservative on your ARV since the appraisal concerns one person’s opinion.

You are correct; it would be awkward having two different parties staying on the property. 

If I am understanding you correctly, the employee can only really "donate" 60% of their AGI and would be taxed on the remaining 40%?