So if you spread out the gain over multiple years to where you're only recognizing a small portion each year, you're going to keep yourself in a lower tax bracket. 

You can transfer the deed to whatever you want, but no conforming lender is going to remove your liability from the mortgage without a court order.You do have options:1) Stay in this home and buy the next to rent out using DSR loan2) Refinance to a DSR-type loan, but most won't lend on owner-occupied properties to avoid Dodd-Frank regulations3) Talk to a conforming lender to find out what income they will recognize when you rent out current property, that they will use to offset the mortgage payment on the property.

It will be really interesting to see the RE industry evolve as people recognize the value of this technology.

If house hacking is something you want to pursue recognize what you're getting into.

For a purchase price of <40k this seems like a decent gamble to me, however I wanted to solicit some feedback from anyone who's tried it, or is doing it presently. 

I am in my early twenties…little family responsibilities (yet)….relatively low net worth (compared to some of the guys in this thread lol) and I can certainly afford to take more risk …and “chase higher returns”BUT with that being said….regarding my willingness to “roll the dice”…..since we are talking gambling….I like to look at it a little differently in that I’m placing an asymmetric “bet”. 

I'm from Cadillac as well, and you may even recognize the name!

This means that revenue is recognized when it is earned, regardless of when the payment is received.In your case, since the guest stay started in December and ended on January 1, you should recognize the revenue for the entire stay in December.

I recognize their name... they're one of the HGTV fix and flip couples right? 

I don’t know why it doesn’t recognize the city, I have to put riverside as well.