If I disclosed that on your account paperwork and was truthful about your intent for the money, I doubt our compliance officers would even allow us to do anything with your money but that.

As long as the seller is breathing and can add 2+2 I'm OK.

I'm not an expert, but I don't think there is any way to avoid capital gains tax on this sale (short of moving to Colorado for two years) Your intention upon purchase doesn't change the fact that it's been a rental for all five years.

@Sherwin Vargas Take a deep breath.  

Even if he has good intentions, since we are not the keeper of ourselves, what if something were to happen to him?

So to kick things off, of me attempting to be more active...With Jack n Coke at my side, I am starting a success story thread of my first 2 properties..lets start from the beginning...January 4, 2015: Currently living in Wisconsin with intentions to flip properties in the Chicago land area.

Excellent credit, enough for down payment, but student loans have slaughtered my debt to income ratio.Could I finance an investment property by claiming that my intention is to live there, and then pretend to live there for several years?

In fact, if you approach regular folks with slick, high polish campaign and you talk really fast, you might come off with "salesman breathe".

After my wife and I closed on the house, my brother and our mother would give us his portion of the down payment as a non-taxable gift (both gifts under $14K limit per giftor) with the intention that we would transfer ownership of the house to a LLC owned by all three of us.

But, I NEVER inflate the ARV, manipulate comps, or intentionally understate required rehab costs.