Usually accessory structures are limited to 30% of the rear yard and must be accessory to the primary structure.

When you submit an offer to the bank on an REO there is usually a cover page and with Homepath there is an affidavit stating whether or not you intend to live full time in the property As your primary residence. 

I'm reading a book and the author mentions the primary residence capital gains exclusion.

In order for that property to qualify for both the `primary residence exemption and sec 1031 it must be a current rental that you have also lived in for 2 out of the last 5 years.  

My plan is to use a HELOC on my primary residence for a down payment for my first rental.  

I have a possible deal on a REO that is next to my primary residence and I have been trying to get in touch with the bank.

For me, I have three single family homes (not counting my primary residence) that would net me about 375K.

You get to use the tax money as long as you play by the rules.You're searching for a property that you can mix the use on - part primary residence and part investment.  

Need to sell primary home first.  

I have seven rental houses and one primary resident house that I would like to get put under once policy if at all possible.