1/2 tax free from the primary residence exclusion and the remainder you can 1031 tax deferred into another investment property. 

Remember polybutylene pipes will also raise the cost of insurance.A buddy of mine recently had to pass on a SFH he was buying as a primary because of this.

The issue I am having is I want to purchase my first investment property using my LLC but the requirements my community banks are sharing with me is higher than I anticipated.I call few of the community banks in my area and they are requesting 20 - 25% down payment for an investment home with 2 months of reserve for my primary residence mortgage and investment property.

House Hackers Who are you using for Primary Home owners insurance?

Leslie, House hacking as far as I understand it refers to buying a primary residence, like a SFH, then renting the remaining rooms to tenants while also living in the property yourself. 

We have since invested the equity from the sale of our primary residence and bought a live in flip on the water that we are very pleased with.

I know it was for me, bought my first house (primary residence) in Oct'07.....terrible timing. 

My question is regarding the sale of our primary residence- my husband had some credit issues way back when so my parents helped us with our loan and we left my husband off the loan and deed when we bought in 2014.

My primary question would be how well you know the area you are investing in?

. - Have the funds lent to you, secured by your primary residence as a private mortgage, and it's no longer a gift.