There is also a chance to offset more tax liability by using a cost segregation on the rental property.  

Your primary residence you get to deduct the interest and taxes but not the insurance.

We want that $500k non-taxed equity!

The tax benefit could far outweigh the cost. 

My payment (including escrow for insurance, taxes, etc) of $2500 would go to roughly $4500.

Hi guys, I had a friend recommend using Abode for immediate property tax appeals and other home savings. 

Even if you're still paying for some of the expenses out of pocket, you've most likely drastically reduced your cost of living by eliminating most of if not all of your mortgage, property taxes, and/or insurance.

I’m interested to know how to get around it when my taxes & insurance (including flood) are all paid through an escrow company. 

Also, make sure you consult with a trusted lender to give you all the best options based on your goals & current scenario.

As the local governments struggle to manage tax payer money responsibly, they should really offer incentives to private builders to build "income restricted" at a much lower price. $220-$300/ft for vertical build costs.