Good Afternoon,Today I have spoken to several very helpful representatives and found thatmy only course of action is to submit an exception to policy in hopes youhear my appeal.

All utilities except for water and sewer covered by tenants. 1 of the two-units occupied with a month-to-month.

@James E.Seems like you are doing the work of your CPA...I hope you are getting a discount on his services by doing your own research.In short - there are time limits of being able to take advantage of section 121 exclusion...however there are exceptions to the time limits in which case you may be able to claim partial exclusion.Your situation is unique since you and your wife both appear to have separate houses that qualified for section 121.

This is how they suggested we lay everything out so we will be protected in the event of legal action (My W2 job requires almost constant credit monitoring and can not have any legal issues---lets just say a government job).Also when looking at how everything is set up, take into consideration that everything listed above has been created since 2017 with the exception of the tax office and her being a cosmetologist.

My case seems similar, except the agent will also be the one doing all the work beforehand, ofc the cost will be reimbursed. the question is he wants 25% of the gross income if his plan works, does this sound right?

We seem to dispatch our maintenance man with every request with the rare exception of a couple.  

Since early retirement from the JOB all subsequent 401(k)-solo funds have been  invested 100% in REI with exceptional returns.One of the better more recent articles I've read on the myths, pros/cons & reticence to do so was this one:https://www.investopedia.com/a...

I was not aware that Fannie loans had an exception.

I just checked their website, and the only exception they list for Non-Owner Occupied HELOCs is that, in Texas, non-owner occupied CONDOS are limited to 75% LTV (other property types are 80%) whereas everywhere else is 80% LTV max, for Non-Owner Occupied anything.

Probably not in residential...the only exception to that would be the companies that bought 10,000+ single family homes during the crash in 2008-2012 and then held on to the properties until 2016-2019 and then liquidated.