If you live in the property for at least two years before selling, you might qualify for the capital gains tax exemption under Section 121, allowing you to exclude up to $250,000 ($500,000 if married filing jointly) of the gain.

With 20% down and conventional financing, properties in this market are producing cash on cash of about 10 to 12% (before vacancy and maintenance allowances).  

My tax accountant files them as investment properties under my social.

This may not matter to a buyer, but I've seen it impact values immensely in the wrong direction, even when it was producing significant income.

IN practice during the GFC banks did not do this.. just like they had a gov. mandated moratorium on 1099C debt relief filings... now though that is done and that is a rude awakening to many folks who think they can just walk.

He just filed the paperwork on the 2nd and his cost for us is $1,700.

Each Housing Authority may file an Administrative Plan up to 1 time per year to modify the Section 8 HUD guidelines.

Cost to file $150, no need for a lawyer, follow the rules.....easy peasy!  

That is horrible because wholesalers didn't produce the properties they are selling and therefore have limited knowledge.  

I have been involved in litigation in the past when a subcontractor ordered materials from China and the formaldehyde levels in the products were not satisfactory to the buyers of the units when they did their own testing and they filed a multimillion dollar lawsuit.