I don't see option 1 and option 2 as mutually exclusive.

I currently only work on fix/flips exclusively and stay out of being a landlord.

You are looking for a combination of two things.The first is called Active Financing Exclusion combined with Inversion.Combine the two with Defference, and you will be able to indefinitely kick the can down the road.

Another thing to think about is if you are going to live there and the the home is worth significantly less than the irs home exclusion sale limits (500k MFJ) then the non-stepped up basis is less of a worry. 

Before I continue, know that I am a Realtor in Las Vegas, and my business is almost exclusively with remote investors.Most people think of property managers as someone who collects the rent after they buy a property.

I presently am exclusively a multifamily investor in my immediate geographic region, but cap rates have compressed so much in multifamily and nothing too compelling has come on line locally.

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There is an exclusion of about $2500 but anything over that amount is taxed at 6% I believe.  

You might search that for the Cities of Dallas, Houston and Austin, San Antonio may also.You will find a list of practices that are considered predatory, but those matters are not an exclusive list of matters that may be deemed predatory.

But they usually do that for clients that use them exclusively and for multiple properties per year.It also depends on the agency they hang their license at.