(And then any state implications)Given this isn't pennies we're talking about- working with a qualified professional to help mitigate the tax would be your best bet. 

Transcribing transactions from bank statements, posting transactions to the correct accounts, and then manually creating an income statement, statement of owner's equity and a balance sheet is a fairly time consuming process and I have not been able to keep up with the book keeping between my regular work responsibilities.What accounting software do people recommend? 

Every now and then something will slip thru like that, but it is not common anywhere in the country.#4.

I currently live in it as my primary residence but had plans to eventually rent it out and then cash out refi once I reach 20% equity in the property.

To make the most informed choice, get a Cost Seg feasibility analysis (free) which illustrates the expected tax deductions and then assess how those deductions impact your tax liability, based on your tax profile.

@Robel Nessro  Many young people are buying houses and then having roommates to help pay the bills.

I can show cost to build as write-off and then 1031 the rest of it?  

Once you have read, underlined, highlighted and taken notes on that book, then I would move on to finding additional resources and groups.All the best! 

So if you're new and looking to jump into the space, then reach out.

The commercial loan will be 3-5 or 7 years then you’ll need to refinance.