Portland has gone a step further, imposing requirements almost guaranteed to trigger unintended violations.

On most small MF that get listed for sale, the owner lost interest years ago and management attention is in a steady decline until something triggers the sale.

And after a year or two you can move into it and make it your retirement home without triggering the tax. 

I cannot speak to the IRS compliance as I am not a CPA but I am happy to share some of what they do, as well as assist in any management and/or acquisition questions. 

@James DuganBased on Texas HELOC rules, your HELOC must be tied to your primary residence, so moving out could create compliance issues.

Sure enough the rehab ran over budget (we had a large contingency that was used up -- some due to contractor malfeasance, some due to pulling the trigger on big repairs like a new roof) and the revenues were right around expectations, maybe slightly below.  

Pull the trigger and learn as you go. 

One more tip – people remember stories that trigger their emotions.

Almost none of them ever pull the trigger.  

I just hope that there's a way to enforce compliance more strictly.As is, the playing field is uneven.