Their financials are fine and they've never had any trouble carrying the mortgage but, as missionaries, they do fundraise their salary so I think that's where the bank is getting stuck. 

If you’re in that situation or anticipating it, you can take advantage of a number of strategies to pay lower capital gains tax on real estate.Understanding the Capital Gains ProblemMany homeowners who purchased their homes long ago have seen huge gains in the value of their residences.

Any suggestions on how to deal this situation with using the same property as primary residence + rental + short term rental ?

Apparently, because this was auctioning taxes not paid in the first years prior to the financial crisis, there were more properties on the block than ever before in Franklin County - over 40. 

But one has to be careful that its not another Fox Conn situation that happened in the Milwaukee Wisconsin area.

I'd love to hear your success stories, tips for using them effectively, and situations where they may or may not be the best fit.

What would you do in this situation and what would you tell the prospective tenants?  

It's designed to prevent taxpayers from deducting passive losses against non-passive income, which often leads to situations like you've described.Your concern about potential double taxation on the $2,000 net income is valid.

As you gain experience and financial stability, you can transition into investing in short-term rentals.Continue Learning and Networking: Take advantage of your time in college to continue learning about real estate investing and finance.

In addition, the owner of the home must not own more than three single-family homes.3) They are unable to provide sufficient documentation, such as the emotional support animal letter, that verifies the ESA is necessary for their health and well-being.4) The tenant provides fraudulent documentation attesting to their need for an emotional support animal (usually a fake emotional support animal letter).5) The landlord can demonstrate that making accommodations for an ESA would impose undue financial burden or logistical burden. 6) The animal is destructive to the property or displays threatening behaviors that could put other tenants or yourself at risk.7) The size or nature of the animal makes it impossible to house safely or humanely.