But the risk is that should the deal go south (check out what happened to real estate values in 2008-2012) the investors may sue you for selling an unregistered security without an exemption from registration and since you did not utilize a Reg D offering you would have no statutory defense. 

Many counties have exemptions that can be filed so it will vary most likely on your situation (primary home v investment), senior, disabled, etc on what those exemptions may be.~ Lindsey

check with your insurance agent.. also federal law dictates that when your owner occupying your 1 to 4 unit you don't have to follow the normal fair housing laws.. you can pick and choose who you want to live in the units .. now some cities or states may have overriding rules regarding this.. but federal law is clear.. on owner occ 1 to 4.. your exempt from fair housing.so you can have a dog and you could restrict dogs for others.there is a well known list of aggressive breeds that insurance companies wont insure.. this is easy information to get.

I don’t think that will fly.)Cousin a is probably screwing himself out of his home exemption either today or in the future?

Unfortunately you probably dont even get the section 121 exemption, certainly not 100% because she should be the owner.

There are a couple of exemptions for those that lived under two years. 

Not knowing the law does not exempt you from it.

I've seen lenders exempt years spent in college as "work history" but the borrower would still need to have sufficient funds/reserves and a solid credit score. 

Every state has exemptions.

But because they qualify for the 121 exemption their account reconciles that with the taxable boot and not tax is due.If their sale is for $1 mil and they take $500K out in boot then their reinvestment requirements becomes $500K because they already took $500K of profit out.I'll reach out via pm to explain more fully.