Of course the bank says "no problem", I start the process etc, then after credit pull and everything state "thing's have changed and you cannot own more than 3 investment properties" so now I'm at a standstill and they want to push me to commercial side, which in this case is requiring them to take my first and have to refi the balance and lose my rate and then tap a HELOC afterwards at commercial terms.

If the property can be sold with conventional financing I am on the other side of things (and the minority) they seller financing is a bad idea due to the risk and the returns especially when considering tax ramifications The idea behind it would be that I sell using seller financing to continue to cash flow each month at a high effective rate with the amortization schedule and put a balloon after 7 years so that I can collect the full amount once the effective rate in the amortization schedule starts to balance out and not be so lucrative in my favor.I’d love to hear more of your opinion on that idea! 

I recommend you stick with 60 if you want to avoid issues.)LATE FEES - The max late fee you can charge is the greater of 10% of one month rent or the balance owed. 

I really cannot figure out what the state here in Colorado is trying to achieve in stripping property owners of that right. 

Most who  lean in the direction of taking ownership in their name do so because they may get slightly better terms on their financing for non owner occupied real estate which is not even the case if the individual is bankable with a half decent balance sheet.

They have it setup so if there is any "transfer" of the property deed that they are able to claim the loan balance due. 

Additionally, finding a property in the right place to balance both of our uses is key.

The location where you invest determines all long-term income characteristics essential for achieving and maintaining financial freedom.

Quote from @Chi Zhang: I've spoken to my CPA about this and he said it is extremely hard to meet the qualifications, and most investors have enough deductions that this deduction isn't worth trying to achieve.

The house is worth $850K with a mortgage balance of $350k and a HELOC of $200K (used). - Can we claim after the sale that we’ve made $850k - $350k - $200k = $300K or does IRS not consider the HELOC in the sale please?