It seems the financial system is structered (largely) to defeat this type of setup.

Airing these simplistic, one sided diatribes among the mostly educated members of BP defeats the purpose of what appears to be a sales pitch for the ignorant and get rich quick crowd

Besides that would defeat the purpose because I would want to continue to live in the extra unit.  

Almost like cheating defeat.

The leverage would def eat into my cash flow but with the $500k of money I just generated I'd buy 7 more properties.

Sort of a "hooray for me and to hell with you" movement - even with multiple protests and several votes of residents to defeat the new train.Not that it's especially relevant, but the stories of corruption on the build and management of the contract are legendary.  

So I believe your accountant will have the tools to mitigate any potential double taxation.the ways to defeat the clawback:1.

If you're committing to having a new tenant every six months, you're defeating the purpose of being a landlord and there are a limited number of tenants (usually corporate tenants) which would be interested in moving to a place for six months (or less).

If you ignore those things or don't do them correctly, a court will likely pierce your liability protection, so you've basically defeated the entire point of setting this all up to begin with.I plan to domicile my parent company in Indiana (one of my family members is a partner at a law firm in Indianapolis, and they will handle for me; Indiana offers many of the same protections as WY/NV etc. so I went with IN simply because I have someone there to deal with the paperwork). 

So it defeats the purpose of what Ibrahim has said.