So, there shouldn’t be much of a change there.

The concept is to live there while tenants help pay the bills. 

Hi Stela,Welcome to Bigger Pockets, feel free to reach out if you ever have any questions. 

Or if the intention is to long term buy and hold but those plans change and the property is sold after 11 months, is still long term cap gains (if there are any cap gains, probably not in this case unless improvements were made)?

what if the laws changed and that impaired your ability to get income you needed to pay your mortgage?

Saw a story on a New York Landlord who removed the squatters and changed the locks.

Each time I heard about this concept it was in a vague context, so I assumed either I was misunderstanding or that it was not a realistic strategy.

I have read about it over the years and while is seemed a big far-fetched when I was younger, I am now at a place where I can see the logic of the expansion over multiple properties - I think it was the BRRRR method that really sold me - where each property can contribute to the down payment of the next property (Still have a lot to learns about the mechanics of that and the balance of the extra monthly payment cost of the cash out re-finance, but I can visualize the logic of the concept).Sincerely,Joe

Is this a  new change or he realized that he made a mistake in the previous returns?

My screening criteria are out of date, and the laws have changed quite a bit since I last used them, but I'm also curious to learn what others include.