Am I presenting my property incorrectly to the lenders? 

@Francesca Perez I believe this is incorrect.

Most people think they will be in a lower tax bracket in the future because they plan to downgrade their lifestyle... this is again incorrect money myths that are so prevalent.By taking you money out early you will incur a 10% penalty but if you understand how you can easily get 20-30%+ returns in real estate a year that 10% penalty is nothing.

I'll be honest, I read your post and smugly went to look up the Cincinnati code to prove that you heard the direction incorrectly.

@Ken LatchersWhether the business of StR arbitrage turned out good or bad; whether the decision was incorrect from the beginning or just a victim of an unlikely occurrence, I applaud the initiative and effort of those who were willing to take a risk in pursuit of creating a successful business and a better life’s for the,selves and their families.Many on this forum advised against the arbitrage route, and I believed that they had many valid points and may have been correct for most people, who went in undercapitalized and without realistic expectations.

@Evan Polaski that is absolutely incorrect.

I'm new to all of this so bear with me if my assumptions, math, or understanding is incorrect.

I would really appreciate some insight if I am calculating something incorrectly.

Spencer,A refinance will do nothing to change the basis or adjust the gains.Passing it down to your errors requires a person well, to you know, drop dead.Please do not give tax advice that you are not qualified to give all that does is make every accountant here have to work that much harder because of incorrect information like that.

@Hem Kumar Your information on publication is incorrect you first of all you must publish for 6 weeks not 3 this comes from the state website on LLC.