@Ian Walsh if you exclude mortgage but include HELOC and all other expenses, it is comfortably under the 50% rule. 

Some will have language that excludes any “business activities” from being covered.

One big question is it proper to include principal portion of the mortgage as "income" (or in other words exclude it from expense) because that's not a "true" expense? 

This will make house hunting both easier (faster to exclude houses from search) and harder (less options)4.

With the 121 exclusion as long as you've occupied and owned the rental 2/5 years you could sell it and exclude all tax. 

There are a lot of these parks in the Southeast so if an investor takes that approach you are excluding a large pool of potential assets.

Keep in mind that it will be harder to cash flow if you are excluding C and some B properties.For all the due diligence you do on the TK provider and the numbers, the other thing to understand is that ultimately the success of your investment will depend on the tenant placed and the property management.

This will allow you to exclude approx $8,000 of federal tax + state taxes depending on the state where the property is located in.I would also argue that the $400 of cash flow that you currently are calculating will be eaten up by vacancy, repairs, capex, etc.It doesn't look like you will obtain 12-15% from converting your primary to a rental.

I am clearly in need of a good accountant, but have been struggling to find one...He quoted exactly the tax case I was coming here to talk about haha You won't be able to exclude the entire property sale on a 121 primary exclusion.

Besides the family members being excluded, do you have a suggestion on the structure?