That said, there are alternative ways to meet the requirements, and with proper planning, you might not need to rely on these specific tests if most or all of the participation comes from you during the first year.

You might consider other strategies, like taking a home equity loan or refinancing to fund repairs, but consulting with a tax professional or CPA would be the best next step for your specific situation. 

I don't want to get into specifics but we passed on the property for a couple of reasons you mentioned.

These are all important considerations, and understanding the requirements can save a lot of headaches down the road.

Does the bank take into consideration the income from the other units?

But...it appears this house has furnishings very specific to the house. 

The specific property I am looking at right now is netting from PadSplit to the current owner  between $5k-$6k per month.

What is drawing you to that specific location?

I'm a GC as well and did the math, the Heloc would save considerable interest because it would average on 33% of the balance borrowed at any one time (and thats assuming constant deal flow).  

This is being very conservative with all the numbers, if anyone is interested in specifics I can provide in a pm.Super excited, as now I have a target AND a plan for my goal.lets ****ing go.