Can someone please explain the IRS rule that allows homeowners to avoid paying taxes on up to 500k in profit from selling their primary residence?

Of course, check the rules from the HOA and the municipality, if any.

I would first look at my personal lifestyle and see what I and the Misses could agree to on a 5yr plan for getting our personal spending as minimized, and budget regimented as possible, to create maximum net capital from our active working. 

I'd start by narrowing down your goals and created a timeline for reaching them.

They make and enforce the "rules".

One rule helped here (I simplify a lot): you should always count how much money will be left in your pocket after all expenses (including mortgage payments, taxes, fees, utilities, as well as the reserve fund for the current repairs of the property).

If not, would anyone be interested in joining one if it was created?

Two completely unrelated exceptions to the general rule.2.

Ideally, the Borrower would make a single payment like they are used to and my Investor has security based on the hypothecated Note.Or, must/should I have Investor in 1st position with a Security Instrument and Note based on agreed to terms and then create a Note Rider for a Wrap Loan between my LLC and Borrower spelling out those agreed to terms along with a 2nd Security Instrument in 2ndposition.Example:Borrower Pays: 12% and 3 PointsInvestor gets; 8% and 2 points (spelled out in a Note)LLC gets: 4% and 1 pointPerhaps there are a number of ways to skin this cat but I’m looking for a simple, yet protective, approach for both Investor and LLC.Thanks,Steve

Thank you,Kinju Creating a LLC with a Wyoming Holding Company To Sell My Xbox on Craiglist!