More likely, he is hoping to use the extra time to collect more rents and thus more fees to generate the funds to pay his owner clients:(

Don't want to pay tax on selling the rentals I unfortunately don't think they actually want to utilize the 121 to sell their existing primary and then potentially buy another one-it sounds like the goal is to ultimately continue owing that initial home which I think makes this whole plan 5x more likely to be torn apart under audit because they're trying to end up with the same property they started with.  

REI is pay to play. 

My clients once they come on board with us generally will flip 5 to 40 homes a year.. pretty hard to do more than about 3 or 4 a month but I have a client in KC that does at least 30 to 40 with me and I know he has another lender.. the difference with a company like ours that is a capital partner your paying a touch more for the service but once its going its ALL our money and then the partners work.

Money has to come from somewhere so where will it come from.issue will be if they increase sales tax it will be regressive tax as those who rent and don't own and have low wages will still pay more for everything.

California attorneys just want you to LLC locally and pay thru the nose the california franchise fee of $800 per LLC per year. 

People pay $400 for Crossfit alone.

We're trying to decide whether or not to pay it off or save to buy another property. 

Sell second house within a year, pay off remaining primary mortgage, build third house.  

STOP paying there rents.