He agrees with virtually everything I've read about the Due on Sale clause, in that it's highly unlikely that a lender is going to (a) even recognize that someone else is paying the note and (b) go out of its way to act on it.

Only your investment gains are taxed as capital gains (which subject to political interference) will likely have some preferential aspects to them if not merely the ability to determine when you recognize them in your tax return.

I would recommend if he can hold the note he can spread out some of the gain over a couple years before you refi.With the 80/10/10, he would recognize 90% of the gain in the first year.

Sometimes, the income is recognized earlier in Australia and the income offset is not available until the US tax is paid.

If you've got the chops, they recognize it. 

But if I'm buying a property in a state that does not recognize series LLCs, and the IRS doesn't view each series as a separate business designation how is that providing me the separation in the event I'm sued in that state?

If you have been a landlord for a while, you start to recognize when your HVAC contractors are way off on their diagnosis. 

That is quite a predicament, but a really good experience for future reference or fellow readers to recognize.

There are always opportunities for those who recognize them quickly and have realistic expectations. 

People sell their house when they are ready, not because they recognize an ad.