He gets an extra 25K : you get your terms… etc : win -win in 10-20 or 30 years the $25k won't matter too much…. but over paying by over $100k is crazy to me… unless the cash flow was insane in your benefit… which is not… Remember that there will always be a better deal around the corner… don't get married to a home. 

Investment property HELOC's will be higher2) The 2 out of 5 year rule states that if you live in a house for the 2 of the last 5 years you can sell and exclude up to $250k ($500k if married) of capital gains taxes.

(What are your KPI's or key performance indicators)5) What happens if one of you dies, is disabled, has to declare bankruptcy, commits a felony, gets married?

As a real estate agent who is 26, married with two kids, and actively pursuing REI I would tell you that sadly the answer that I know you don't want to hear might be that you just need to wait and build up some cash while paying down some debts.

We thought about making that house my principal residence and our current house his principal residence but remaining married and filing income tax jointly?

I am a disabled vet (USAF), am married and our kids are minutes away from leaving the nest, I have been a stay at home dad.

@Krista Dodson everyone I know charges Per Person regardless if they are married, single, roommates.

BACKGROUND:I am married with two young children and am looking to make my first real estate investment.

If you've lived in it for at least 2 of the last 5 years, you can sell it and exclude the proceeds from your income calculation, up to $250k of gain, or $500k if married and filing jointly.

Of course starting out I'd probably be in the range of a small $60k condo (lowest of the low in my market).I also love the idea of getting a multi-unit with an FHA but the problem for me is I'm married with 3 kids and a dog..