If it was 24 months of the last 60 months before sale, then they can treat it as a primary residence and exclude the gain up to 500k.

I can treat the HELOC money as my personal investment rather than borrowed funds and get a consistent figure to compare, but I am wondering how everyone else might analyze the deals and asking if there is a better way.Thanks for the response!

Question on entities: We are set up as an LLC and have elected to be treated as a partnership for tax purposes.

Even if they do, the game would be entirely different and they would qualify us for a loan that will be more treated like commercial rather than residential.

If there are concerns about about the property being destroyed, include "safety" inspections throughout the duration of a lease agreement to stay on top of how the home is being treated.

My treat.

Some investors treat the 1031 Exchange as a transactional tool. 

We treat them as we would want to be treated.

We enter back yards uninvited only if we suspect abandonment, treating fenced yards with 48 hour notice (in our state) if we need to do more than peek over the fence.

they treat lawyers fairly well here, at least I have not had any rocks come out of my screen.