This is how the process works, if you find loop holes in the process, then good for you.

IRS will assume you have taken the depreciation into account even if you don't do it, so you will pay for the loophole without benefiting from it.

There has got to be a loophole or something I’m missing.

yea i'm very fortunate to see this loophole lol, basically i just use my w2 status to "trick" the gov. loan to my flipping activity lol so ya it works....i keep buying and selling one flip every 2 3 years with minimum risk. key is to identify which bank that's willing to work with me although my dti has been maximinized..... i think i will continue do this til i have no w2.it's funny actually i made more dollar from real estate rather than working in tech although i spend most of professional time in tech....but if i have to moveto real estate world then like you say i can't get the loan lol

in real estate I would have taken advantage of the STR loophole, and also gotten more mentorship for someone that understood the market I was in instead of using general advice. woulda been less headache more revenue. 

A potential problem I see is that they may not be familiar with locallaws / beneficial loopholes etcthanks,pfinder

I know every law, rule, trick, loophole and fraud.

I had a realtor tell me before that she would never let me lose my EM because there is always a loophole in the contract.  

This is important for those are tight on income to qualify for that 2nd FHA loan.Obviously if the borrower makes a ton of income and can qualify for both FHA loans anyway then this loophole is not an issue.Most banks want you to atleast have moved away or have rented for atleast 6 months prior to starting that 2nd FHA loan.

My "partner" happens to be my fiance, so I'm tempted to just get married early as a loophole, but we would rather not right now ;).