Due to the Housing Bill signed August of this year, investors can turn a rental into a residence before the new law comes into effect Jan. 1 2009, live there two years, rent for three years then sell and the rental does not count as "unqualified time" against the capital gain exclusion.

Be aware that different measures exclude some things that ought to be counted (IMO) and can highly distort the picture.

Everyone involved needs to make money, and the more people, the more money they will want to make, vs. the less you make.Send over the details of the house, age, age of systems/roof, size, fixture count (beds/baths) and anything else you'd like to share.

If you are counting on appreciation you may get burned when the market turns against you. 

I didn't want to have to count on a refi to get into a fixed rate later. 

and if it is based on position, do I count as lowest position (least protected investment) or highest position (most protected investment)?

My cash on cash return goal (not counting vacancy and maintenance) is 40%. 

6.house is not in a flood zone7. comps in the area are solid8. room count based on archive mls

Luck is too large a variable to count on. 

This could work out alright, but I wouldn't count on this going smoothly every 2 years like clockwork.3.