Exemptions shall mean dwellings to which this chapter shall not apply.

The general consensus is that they will only allow STRs with a homestead exemption in place moving forward.

Exempt from Unrelated Debt Finance Income Tax: While investment income from real estate that is acquired with debt (which must be non-recourse financing) and held in a Roth IRA is subject to UDFI tax, the same property held in a Solo 401k is generally exempt from UDFI tax.

With that time frame, am I missing the cutoff for the 2 of 5 rule exemption by one day by closing on June 1st, 2018 instead of May 31st, 2018?

Account Closed There are several ways to build wealth; I'm from the school of go big with syndication.If I were you I'd get to know, trust, and align myself with a reputable team of operators that utilize 506b exemptions in their syndications and:A) Qualify each other and build a substantive relationship so you can begin to analyze their deal flow and ultimately invest in their opportunities. 

Wouldn't this kind of LLC be exempt from the Cal franchise tax since California does not offer this kind of LLC, and is this type of LLC a legitimate entity?

We are currently pursuing an exemption to the rider, but if that is not approved, we will have to refinance.

If it doesn't smell good to you..then don't invest regardless of who says what.1) Understand the Industry and related Industries (Real Estate, Mortgages, Credit, etc.)2) Learn how to evaluate a property so that you are not relying on someone else (valuations, construction costs, market conditions, etc.)3) Learn how to "vet" the sponsor/developer (Borrower/Investor) with regard to overall character, credit management, experience, resources/team, attitude, etc.4) Have your attorney draw up the Mortgage, Note, Trust Documents and related documents that will be used to secure your interest in the property5) Secure Title Insurance with a Survey on each transaction (understand how to read a title report and specifically the B2 exemptions page(s))6) Secure Property Insurance on each transaction (replacement value if possible)7) Secure either a BPO and/or actual Appraisal on each transaction (as-is as well as Subject To values and an income approach on duplexes and up)8) Do not release money on a construction project until x percentage is completed (Draw Schedule) and never release the final payment until the project is fully completed - Use a 3rd party Inspector (familiar with the Construction Industry) to determine percentage of completion / line item itemized9) At the first sign of distress by the Sponsor or the Project, be ready to act and act swiftly10) Have FUN! 

You could actually give him a market or better than market price for it which would increase your basis and be absorbed in his exemption. 

Some states have a homestead tax exemption which reduces the taxes for owner occupied properties.