After a month or two, check your credit for free at CreditKarma and when the lower payments show up on your credit report, get ready to apply for your mortgage.The 3rd step is to choose a bank or lender that is Fannie Mae backed because they recently changed the student loan rules to be able to use the lower payments shown on your credit reports as opposed to FHA's 1% rule or brokers that say they have to amortize your loan to calculate DTI.With the lowest possible debt combined with Fannie Mae, at least for now in mid-2018 until the rules change, you should have the best chance at a DTI that can get you into a property. 

At that ARV you'll likely only be able to refinance at $90k, so, although you'll cash flow better than you have estimated, you'll have to leave $10 - $15k in the property.

I am worried since I got 5.5% - 6.5% rate based on initial estimate. 

I spoke to the lawyer today and he said the chance would be small, but he can't tell me I couldn't be sued. 

@Logan LarochelleUltimately, everything you report on the return can be questioned by the IRS...will they...Your role is to report an accurate return based on the tax laws provided to us.If the IRS questions anything you should say you are excluding the gain via section 121.Show them the closing documents on the day you purchased the home and the closing documents when you sold the home.Then to show that you lived in the home for 2 years - show them the receipts of utilities that are in your name.Likely they won't audit you - but in the chance that they do - you should at least have the documentation.

When you're small the risk is less than the fraction of a chance you're going to get sued. quitclaim deed you say?

Chances are good that one of the three prior landlords will at least give you yes or no replies to questions like the ones you are asking. 

Can you estimate how much labor YOU put in? 

It's not that western cultural norms are better or anything like that, but there's about a 99.99% chance that your rental property was built from the ground up to assume western cultural norms would be practiced by residents. 

.- Lease out the store front half of the lower level to retail or something similar (not a priority since the apartments and storage alone will cash-flow the deal)Operating Expenses: ~$11000 (high estimate)NOI: $26350.00Debt Expense: $18914Cash Flow before taxes: $7438.00Taxable NOI: $4425I’m not looking to pay myself anything, as I’d just like to hold this as long as possible for my kids and to learn as much as possible for my next deal.