Unless there were some extreme circumstances, what was described is at the point of being unethical.

Don't get me wrong, many investors do it, and in many circumstances it works out for them, but you ought to be aware of that negative.Also, unless you find another PML, you will be extremely hard pressed to find a cash-out refi with a 5.5% interest.

IRS uses  Fact and Circumstances  to determine if the house is your main home.

It's tough to do and not all deals will qualify but it certainly is doable in some circumstances. 

But, as I have not visited this place before, I’m not sure about the climatic conditions and other circumstances of that place.

I own a 12-unit multi-family property in (downtown) Leominster, MA and due to a change in job circumstances I may need to sell it.  

Depending on your area you my be open to appeal your 2017 assessment - and you can appeal previous years in certain circumstances.  

Nobody would ever pay their taxes in that circumstance, gambling that other people will fix it up for them, basically for free.

It would depend on the overall facts and circumstances discovered during an audit, but it could be used against them. 

However, circumstances have obviously changed.