I am helping a client who is also a Veteran to do this exact thing right now; at first he wasn't sure he wanted to move twice to make it happen, but when he realized he was going to basically get a cash flowing rental property for free(no money down) he realized it was an easy decision.

Beside the “subject to” that’s recently become the subject of much debate we utilized  ”no interest short term owner financing”, the “2nd mortgage crank”, substitution of collateral, mortgage subordination, wrap loans, real estate “exchange” (not for tax reasons), sale - lease back, guaranteed rent payments, sale - buy back, land offered in lieu of down payment, zero coupon bonds as substitution of collateral, and a few others that escape my memory.  

See below output with a few thoughts:- Would need a few more data points to be precise (rehab estimate, duration estimate, property taxes, insurance, utilities, HOA, maintenance, etc.).- Assuming a 12% HML with a 3% origination fee held for 4 months, with a 30-year cash out refinance at 70% LTV and 7% interest rate, where the property stabilizes two months after refinancing (6 months after purchasing), you would (i) nearly breakeven on the cash out refinance and would generate $455 in monthly net cash flow in year 1, increasing annually, assuming you rent for $7,000 in year 1 and increase rent 4% YoY.- See below and let me know if you would like me to send you a copy.

Feel free to DM me and we can walk through it. 

Assume there is a way to categorize it, track individual expenses, then have cash-flow reports for income/expense come tax season.Thanks!

I pay myself on a W2, I've submitted my tax returns and a bunch of other info to them, now they want to see the company's financial records.

Feel free to reach out to me directly if you have any other questions, want to discuss further, or if you would like flexible financing options!

The gain allocated to the OO unit will be tax free up to $250,000 if single or $500,000 if married. 

If you're interested feel free to give me a call and I can try to answer more of your questions.