Also if your state gives you a homestead exemption on your property taxes you may be required to give that up if it becomes a rental.

Just following that exemption it sounds like a kid can mow a lawn for $25 and not be considered an employee.

But is much used in this State.http://www.dhcd.virginia.gov/HomelessnesstoHomeownership/PDFs/Landlord_Tenant_Handbook.pdfI am exempt of the rules shown in the link that is immediately above, but I rather closely adhere to these rules as to reduce conflicts at court.According to these Virginia Rules and Regulations, I don't see the legal threat as Bill suggestedThe business sense that Dyna speaks too is quite applicable in all situations.Thanks again.

I don't know if there's an income or transfer tax exemption on gift from family (brother to sister), or how this is going to affect my financials / tax burden later on.  

Just because a neighborhood has some rent controlled properties does not mean that ALL of the properties are subject to rent control ... if you study the ins and outs of the rent control ordinances you can find out which properties are exempt.

and there are foundation issues that will crop up and not if but when the soils there are expansive.. so those two things.. have to be taken into consideration.what happens as well is if you buy an owner occ... they could have very low tax's as they get the owner occ exemption.. then when it goes to rental the tax's sky rocket.. and poof there goes your cash flow you thought were going to get.Just like folks that live in Texas why would they buy in CA and subject them selves to CA income tax and the 800 a year franchise tax... when they pay none in Texas it all evens out.. plus they don't have the expense of travel there etc.there are better tax treatment states for buy and hold out there... and if your appreciation is marginal then cash flow is the only reason to buy them

Or, can we put his Trust on title, would that satisfy the "estate planning purposes" exemption, or would it have to be for my estate?

And as soon as you've lived in a property you own for 2 years it will qualify for the primary residence exemption of $250K ($500K if married) of profit tax free. 

@Tyler Galloway - If you lived in the condo for two consecutive years in the last five, you should be able to sell it outright with a $250k capital gains exemption for a single person or $500k for a married couple. 

I've heard it called a rate and term refi and in this episode they call it delayed financing exemption.