Thanks @Marc BrennerFrom my understanding, a BRRRR is no different from a Flip, except one chooses to hold and rent, another chooses to sell?

I choose to live in my first property with my brother for 2 years to avoid capital gains tax.

Putting HVAC in any unconditioned space is a big no-no and should be avoided, if at all possible.No matter what you choose, make sure the contractor does a complete manual-J calculation (and ideally blower-door test) so that you know the system is properly sized.

Can I atleast choose which property to claim the exclusion?

It's their house, and they can choose to sell it however they would like.The language from the policy is below:Section 1.3 Exempt ListingsIf the seller refuses to permit the listing to be disseminated by the service, the participant may then take the listing (office exclusive) and such listing shall be filed with the service but not disseminated to the participants.

@James Morrissey You can definitely choose and screen your first tenant all on your own.

While a tenant can choose words carefully and strategize over a carefully worded email, catching someone off-guard over the phone will likely get you the truth about the situation.

The Section 179 system requires the taxpayer to choose and specify which assets are being deducted under section 179, in the first return filed for the year, or in an amended return filed within 3 years of the return due date.

Deliberately choosing to increase income or lower the expenses that were necessary and ordinary to run your rental is loan fraud, plain and simple.  

Many lenders choose appraisers based on a general rotation, so you might not be able to get the same appraiser assigned to the job on the back end.