I'm definitely not your buyer or bidder (not that you were implying that) but it is an important lesson to learn for me too; bad days and bad attitudes can have pretty far reaching consequences. 

@Nav S.Beware of the simplistic answers that imply you can avoid capital gain tax based on the fact you lived in one unit. 

This implies we can do X% down, Y% interest; as long as it makes sense from my standpoint I can pretty much dictate terms.My questions are....1.

Welcome,Just thinking out loud here, but did you calculate the potential rental income on that 500k (not "M," that would imply million) purchase when coming up with that 41% DTI?

The concept of rehabbing any property implies forced appreciation.

There is a big difference between accounting manager and account manager; account manager doesn't imply someone with an accounting background.It's better to find someone overqualified than someone who doesn't know the difference between asset and liabilities and operating and finance activities.

Selling a business often implies to customers that they are viewed as value on a balance sheet and as such is often kept private until sale is final. 

You can see in just a few years how the VA property can easily be a bigger boost to your net worth than the Memphis properties.Now realize that even with a PM the scaling of the number of units implies more work and effort.  3 units is unlikely not to be more work than 1 unit (assuming similar asset class - Class not lower than C+; I only recommend expert in slums try the D+ and below rental units).I would not choose the historically low appreciation markets but if I did it would only be for MF+.  100 units at $200/month cash flow can be significant even if the cash flow only increases at the rate of inflation; this likely provides a very nice life but probably not financial freedom especially if you are living in San Diego.  500 units with that cash flow most people would have financial freedom. 

This implies that an RE investor in San Diego must find other means to profit for a purchase of an SFR to make sense. 

I am unable to understand what you are implying or how it in any way it could possibly help get a property out of an S Corp without causing a taxable event.