We plan to sell and use the $500k exception to the capital gains taxes because we lived there for two years. 

Money spent now will save huge headaches later.My 2 cents,Mike

(I'm an estate planning lawyer - not an insurance agent).That being said --- you really need to sit down and understand your goals before you get advice on what vehicles you want.Insurance people will tell you insurancelawyers will tell you to set up a ton of LLCs and trustsNone of these are correct if your goals don't align. 

Maybe you’re only saving a couple hundred dollars an hour.

Are they looking for tax saving strategies themselves or are they already at the lowest tax rate possible? 

I plan to live there while I renovate, then pull out my investment upon refinancing.

I plan to live in in while I renovate it, then pull out my original investment (and maybe a bit more) upon refinancing.

A few helpful clarifying questions, hopefully help get your wheels turning as well, would be:What are you planning on doing with the property and what is your exit plan?

You just need to make sure when something goes sideways cause it will that you have your reserves and a plan. 

There is a lower ratio program of .80% in cases of low rents but the rates are higher usually in the 8.50 to 9.50% Be careful of your prepayment penalties as well it can lock you into a high rate or cost you money if you plan on refinancing in 12-24 months.If you ever have any specific quetions feel free to reach out I am always happy to help and talk REI!