I to was planning on using this program,  only downfall for rei is that program requires you to make this your primary residence indefinitely.

I agree with others in this thread identifying the fact that if there is a multi-family property, it is probably in a very sketchy area that you would not want to live in. Definitely

If/when that becomes a reality then I am not sure if I should just keep those loans indefinitely or start paying them off.

One more question, do you believe the market will keep climbing indefinitely? 

Depends on what state you’re trying to do your LLC in. Definitely

Todays appreciation numbers, in some areas, simply can not be maintained indefinitely.

the result is that you get to indefinitely defer paying tax on gain and depreciation recapture. 

The claim is that it didn't expand in Portland so they feel there will be no problem and they will extend it indefinitely.

Here’s an example of the type of structure that could work in a horizontal hotel model (this is also why I mentioned cap rates and commercial zoning)Either way, I really appreciate you weighing in - definitely got me thinking

That won't continue indefinitely however, so your decision should be based on which market will best achieve your goals in the long term.