Our plan was to clear a room for her to move back in her house.

There is a ton of knowledge to immerse yourself in here.

:-)Great support in here, though!

I'm sure plenty of people will jump in here to give you some great advice and personal stories on the best ways to finance.

how do I add peoples name in here so they know I mentioned them?

But IMO one really big and under-represented risk is the potential of "strategic default" or "selective default" risk inherent in lending large amounts to REI investors.

If she lived in it for the year and then changed jobs so that living there was no longer feasible and you have not sold a house you have lived in within the last two years I believe she would qualify for 50% of the primary residence exclusion which in her case would be $125K tax free.  

@Crystal Smith is right on point in her post above.

As in a Mortgage state this could take the better parts of a year or more to foreclose.And would you say that this is a correct statement.. " when buying a second the investor to protect themselves should be able to stroke a check at anytime to payoff the first"  Or is it just a calculated risk those that buy seconds take inherently in the deal...

But, thought it would be interesting on how others might fix the obstacles on this one.