For any year in which I would start on January 1 with a multiple of 60k in cash (from rental income plus excess personal cash), I buy another model property, using the same assumptions as the first.

.  :-)As someone who has purchased many dozens of REOs in Atlanta, I can tell you that the MLS has dried up considerably over the past couple years, and deals are no longer easy to find...at least not publicly listed ones...

Their criteria is pretty cut and dry; move in as your primary residence or face fines ($250,000 I believe).

Wow, that seems excessive.

I also recommend you have them wash and dry anything cloth on a high heat setting.  

They may look at expenses but that gives them an idea of future expenses but is not a qualifying matter unless expenses are excessive and it matters what they are, if they are likely to be ongoing or if they were incidental in that year.

I'm from Sacramento and the flips have dried up here.

Some will even baiil on the loan and not fund leaving you high and dry especially if purchase money. 

Does anyone have a dry pass through double closing title company in Colorado that they’ve worked with recently which does dry double closing, meaning C buyer funds A seller and B keeps proceeds?

California charges a minimum tax of $800 a year per LLC, and more if you have gross receipts in excess of $250k.