Similarly, the sale ($575K) minus your adjusted basis determines your capital gain.You may qualify for the primary residence exclusion (up to $250K single/$500K married) if you lived there 2 of the last 5 years.

Determined to succeed, I spent countless hours in the library, absorbing knowledge from the industry’s greatest minds.

I am not able to determine your purpose in posting this, since you did not also offer solutions for the seller or for the investor.The situation does not unfold when the homeowner receives a solicitation, as the article mentions...it begins when they are late paying their obligation to their lender.There is a timeline to a bank beginning foreclosure.

It's also valuable if the IRS ever comes a knocking!

How do I determine how much of a down payment I should make (keeping my goal of buying more properties in mind)?

I have been cross-ways with the IRS about 25 years ago due to a dishonest [ex] employer and I dont want to have to go through that again.

More money going to the IRS. 

Don't quote me on that, but it's easy to look up the IRS regulations.I recently had a conversation with somebody else who is planning to start an STR business. 

If you go this route, be aware that you’ll lose payroll deductions—so you’ll have to track contributions on your own (see IRS Publication 969 for HSA rules).2.If You Own a BusinessIf you’re running an LLC or S-corp, you might be able to fund an HSA through that payroll.

Translation: your client cheated the IRS and the states.