But hey, the rent is guaranteed...

There is no way you can guarantee staying in your timeline.

I will check out the link you sent.

QI is telling my friend (buyer) this would not constitute a taxable boot as the money is not guaranteed to the buyer. 

Whats the actual treatment plan and guarantee?

Here is the link to the Mortgage insurance removal for Fannie Mae originated loans.

A link to FilePlace is at the bottom of every page, so it is easy to find.If you have technical issues, send an email to [email protected] and someone will help you.

HI - not sure if linking is allowed here but I just put out a piece on advice on this exact topic (https://www.biggerpockets.com/forums/517/topics/1196250-tip-...) - you should be OK but it would behoove you greatly to get some sort of documentation like a BPO (Broker Price Opinion) of the value now for use later in the refi!

It’s also much better if any loans taken out by the LLC are NOT personally guaranteed by the member/manager of the LLC., although this is often not possible.  

But at least our clients know when we charge them for something, the work is needed, done right, and guaranteed.