But remember there's 70% of people who are terrible at what they do and 30% who are amazing in any occupation. 70% of agents, rehabbers, McDonald's workers, property management companies, etc. are terrible at what they do.

The allocation of sale proceeds will be in accordance with the percentage of the property you allocated to the rental unit when you set up your depreciation schedules.Whether you qualify for the capital gains exclusion on the sale of a primary residence depends upon two tests:  an ownership test and an occupancy test:  Did you own the property at least two years during the fives years prior to the sale?  

Given the high end rehab work we do and the fact that we never defer maintenance, the odds of being able to sell to an owner occupant down the road are pretty good.

I actually did this because real estate really interests me and I'm hoping to eventually transition out of my current full time occupation into RE sales and investing full time.  

I believe I would be able to get at least 50% occupancy, but would think i could get more.  

@Cassie Kwok, if you were to move in you would be able to take over the unit and remove it from the rental market but then you would not be able to re-rent the unit out for a long while. 5 years is a magic number in many areas regarding adverse possession, have you been paying the property taxes or has the occupant?

Unauthorized occupants are so difficult to monitor and enforce and drive me absolutely crazy.The threat of removing what is likely a pet will force the issue. 

This same code official has carried out two occupancy inspections for me and has issued me a building permit in the past.Consequently, when he says jump, I ask how high, and when he says s***, I ask what color.

Also - this may be a question better suited to the Tennesseans as it involves the THDA down payment assistance but I imagine several states Ave something similar.It's said that with the THDA down payment assistance you can't rent the property but does this mean the whole property or can individual bedrooms be rented out if it's an owner occupant?

If they want to move in with other people, I can determine whether the rental has restrictions on the number of occupants or if there are different application processes they need to follow;3.