Hey Matt Rothwell, check out the paragraph that starts (3) Property used by the taxpayer as his principal residence.It's very open-ended, but it's the IRS' definition of a primary residence.http://www.gpo.gov/fdsys/pkg/CFR-2007-title26-vol11/xml/CFR-2007-title26-vol11-sec1-1034-1.xml

Welcome Carter Catlett Thats interesting, according FNMA's sellers guide "If the mortgage being delivered to Fannie Mae is secured by the borrower’s principal residence,there are no limitations on the number of properties that the borrower can currently be financing"

If you can get your principal and profit back out tax free while keeping a cash flow property, wow!

I have also noticed in some examples that people add their principal from their mortgage payments to the cash flow number and then subtract the deduction number?

With one house paid off, you're getting zero principal paydown.

@arjun k Those are my same principals.

Hey Michael, yes we felt paying principal & interest made the most sense, between 5-9 years & thus far we have felt around 5.75% makes the most sense.

if $0 liabilities, monthly debt allowance include PITI(principal, interest, taxes, insurance) or principal and interest only?

(KISS principal)I choose to rent here in SD.

In most states you need to have a license to represent 3rd parties.Having said that, you can do this if you are a principal in the deal.