If you're using the property as a residence based on the facts and circumstances, this exception isn't going to help you.If you're not using the property as a residence, and are merely on site (even if you stay nights) to engage in repairs and maintenance on a substantially full-time basis, well that's kind of a safe harbor that gets us out of the personal use trap under Sec 280A. 

Given your circumstances I think that a 1031 exchange is likely the most tax-efficient option for you. 

Hello Everyone,The purpose of this post is to determine or get a rough estimate of rehab costs and some suggestions on what I should do regarding a couple circumstances with a potential house flip.

Thanks Max, my concern lies with this area of the greater economy and the resultant impact on the overall housing market rather than my own individual circumstances.

You already said you would pay it in other circumstances, so it seems that may be your answer.

A sole proprietor is a business, without an entity.An LLC can be especially useful in certain circumstance, such as when partnering on deals.

Now if you do not have anywhere else to go because of your circumstances and that is the real reason you are fighting to stay in the property then that is different because you are fighting for your survival and in various ways we all can understand that.However, if you are fighting this "on principal" then it should be even easier for you.

I too, started under similar circumstances, my wife, who was then my girlfriend "encouraged" me to purchase my first home in 2011, best decision I've ever made and we haven't look back since.

Is there a wiggle room for accelerated depreciation for special circumstances such as this?

I have bought properties I intended to live in but decided to rent out instead, in my opinion there is nothing wrong with this, peoples circumstances change all the time.