Saw this over at MMM and thought this would be of interest to any live-in flippers expecting to have their capital gains shielded from taxation when they sell...It seems the House tax plan would redefine "principal residence" as a place one has lived in for 5 of the past 8 years rather than 2 of the past 5:SEC. 1402.

Another thing that helps maximize the strategy is the amount of cash inflows a person has each month or the amount of inflows because on a revolving line the interest is calculated daily or on an average daily balance like what  depending on the LOC (line of credit).on the All in One or AIO loan from CMG the interest is calculated daily and swept or added to your balance at 12AM each day so all your paychecks, rental checks from rentals, or stock dividends, distributions from your business, or etc can be used to lower your balance by 12AM each day and lower your total interest costs.Most HELOC's or lines of credit calculate interest on the average daily balance which is like all balances within the last 30 days divided by 30 which is not as efficient as the AIO's daily sweep but close.The third method of interest calculation is the 30 year fixed which amortizes or calc's interest every 30 days or month so extra principal paid into this loan after the 1st of the month doesnt lower the incremental interest on the reduced balance till next month.

However, when I crunch my numbers and look at what is happening to my principal when I switch from 10 year to 30 year it really sucks. 

Even if the property is in an LLC and the financing is in the LLC's name, the principals of the LLC almost always have to give personal guarantees for the loan.  

I would say at least 20% of the principal as seed capital. what is the average cost to buy in your market?

Do not spend your principal.5.

I wrote a blog about this topic specifically for commercial multifamily, but a lot of the basic principals still apply:https://www.biggerpockets.com/blogs/10191/67979-po...This is by no means an exhaustive list, so I'll echo what others have said and advise that you seek out a CPA or tax strategist for advice an techniques.

There's so much more to this calculation than PITI (principal, interest, taxes, insurance) and Rents.

The remaining principal is $71,600.

But buy and hold generates wealth - thru rental income, principal paydown, and appreciation.Whether its commercial or residential really doesn't matter - just as long as its buy and hold.