I'd suggest listening to BP Podcast 109 and consulting an attorney.

@Jennifer PereiraYour post above illustrates precisely why it is advisable to consult with an accountant and attorney and plan before purchasing your first rental.  

The de minimis exemption was clearly defined in commentary as applying only in situations where someone who had owner occupied a residence have the option to seller finance a home they had occupied and chose to sell and finance, and, in the case of inheritance of a residence or residences (up to four) to sell and owner finance those homes.Given that stricter Federal Law supersedes less strict state laws (and visa versa) any of the older state laws on the subject are now mute.Rishel Consulting Group is a consultancy on chattel seller finance nationwide.

I graduated Ohio State University as a Finance major in 2012 and then went into Technology (SAP) Consulting.

I'm currently looking for a path that can allow me to quit my engineering consulting job and invest full time.  

That is out of my area of expertise and should be consulted by that qualified attorney you mentioned in the beginning of your post @Ryan Herald. 

(Here is the part of the thread where I tell you to consult an attorney and disclose that I am not an attorney....so do whatever you want)In any event this topic has been discussed hundreds or thousands of times on BP.  

You will gain a lot of information and at the same time you will find questions that you should be asking when you consult your CPA/Lawyer.

Hi I am Frank and I have  started a Real Estate Investment company. I am interested in fix and flip at this time. I want to start in Colorado and work my way out. I am looking to meet contractors to work with me on th...

I live in the northside neighborhood of Lakeview in Chicago, IL and work full time as a digital marketing consultant.