A statement that you are making an election under section 451(d) of the Internal Revenue Code and Regulations section 1.451-6.

Now i know that flood insurance is a small price to pay upfront, I not only had to work with the code office, but FEMA regulated how I was to get my homes back to their standards.

I am strictly buy and hold and take nothing from the properties, profit goes either into upgrades on existing properties or is used to help fund buying a new property.

Needless to say, you have to be prepared to accept a "no" and walk away or just accept the existing offer if you go down this road.

Its a rate and term refi of an existing mortgage/note.

Cash reserves would be two monts PITI for your existing mortgage and six months on the new loan.

I had existing tenants for both of my properties.

But does adding the bath have more to do with where the existing plumbing is located, than the size of the house?

The existing loan would be assumed.

I have read some of the topics on multi-family investing in regards to the 50% and 2% guidelines.Let me understand correctly, If I live in the property 2+ years and want to move into something bigger and go conventional, I can leave the existing FHA loan as is or would I have to change it since I wont be an OO?