Im liquid but are there any loopholes to decrease the initial downpayment?

But even by the way you formed your question, it sounds like you're just trying to find a loophole to avoid be held to account for your side of the bargain. 

As the 'equitable interest' loophole was the only way that we were allowed to 'legally' market our assignable contracts in the first place.

when people hear "its a gray area" they often think "oh its legal in some way" when it usually means "its really not allowed but we haven't bothered to spend much time closing random loopholes...yet" I wouldn't like to be in front of a judge trying to get this enforced, especially with the public threat of clouding a title.

In Garrett Sutton's book, "Loopholes of Real Estate", Chapter 11, he writes that a "year" is justified if you lived there for the majority of that calendar year... therefore living in your primary residence for 1yr and 7months consecutively should grant you the Primary Residence Exception, right?

I dont think you can afford not to because the benefit of using the STR (short term rental) loophole will exceed the cost of the tax work and cost segregation study reports (probably est~ 1500-2500 per property).

For example, we could have a system whereby you get one vote for every $1000 in taxes paid subject to a maximum of 1000 votes per person.So, to avoid people abusing loopholes, the rules on how many votes someone gets becomes as complicated as our tax laws!

Seems clear enough, but also seems like a bit of a loophole for professional investors who happen to only own a couple SFR's.

If your mindset is to look for loopholes, or to take some legal chances you'll likely find yourself in trouble someday.If your mindset is to be honest, fair and law abiding, there are no guarantees but you'll probably be fine - even with preforeclosures.

Is there a loop hole or something he can use to avoid getting hosed?