He actually made the case studies in my book. 

I have made my first offers ever that my underwriting has projected negative cash flow.  

However, I believe that the best decisions are made with the help of a supportive community and insights from those with local expertise.That's why I'm reaching out to you all today.

As @Gina Tse-Louie mentioned above, i would make sure your PCOR was filed correctly with the county, and checking the "parent to child" box in order to hopefully avoid a property tax re-assessment. i have a client currently going through this now and it is quite the pain to unwind (we're still hopeful they will). better to prevent the headache before it becomes one, but i dont see it being an issue for your loan. 

And although there is a lot of money to be made in the industry there is also a lot of money to be lost.  

What made you interested in investing in this type of deal?

In order for you to qualify you would have had to have lived in it also for 2 out of the 5 years prior to sale. 

Save your cashflow and your down payment money then with the 3rd purchase go for a FHA loan 3.5% down with the amount you made. 

In the first couple years of owning the rental near the coast, we did not homestead it, because we had not yet made it our primary.

Being pet friendly definitely helps, plus we made a couple thousand last year on pet fees.