The federal government pushes about all new developments toward creating some type of HOA these days, and have for a few decades now.

@Josh Marcus @Ali Boone makes very valid arguments.The costs of filing a tax return for each LLC both state & Federal, and in both your states adds to the costs.

In the state of NJ, the tenant's security deposit must be deposited in either:1) Shares of an insured Money Market Fund.2) Sate or Federally chartered bank, savings bank or savings and loan association.Asides from this (from the NJ State Laws referred to above), I've consistently read suggestions to put security deposits into an escrow account, despite the word "escrow" not being in the NJ Law for tenant security deposits.Now, Bank of America being the location of my current accounts, I had asked if they offered escrow services for security deposits and how to it should be executed, and requested all the information there is that a customer should know about their escrow accounts.

The 24 months does not have to be consecutive.The 121 Exclusion allows you to exclude from your taxable income any capital gain from the sale of your primary residence up to $250,000 if you are single or $500,000 if you are married ($250,000 per taxpayer).

Your friend should also seek the advice of a tax professional as a short sale to anybody may cause a taxable event payable when his/her next tax return is filed.

He advised me that if your activities, property and investors are all within one state that federal rules do not apply.

Most are member of FIABCI (fiabci.org), the international real estate federation, or belong to national associations that are represented by ICREA and hold a TRC certification (worldproperties.com has all RE agents, check for TRC for international).

If your household income is $520k, you are in the top 1%.According to the Federal Reserve Survey of Consumer Finances, a net worth of $416k puts you in the top 20% of American households.

Both can be avoidable gambles.One thought, check to make sure there are not federal liens of record.

In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayer’s principal residence depends upon all the facts and circumstances.If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer’s principal residence.In addition to the taxpayer’s use of the property, relevant factors in determining a taxpayer’s principal residence, include, but are not limited to:(i) The taxpayer’s place of employment;(ii) The principal place of abode of the taxpayer’s family members;(iii) The address listed on the taxpayer’s federal and state tax returns, driver’s license, automobile registration, and voter registration card;(iv) The taxpayer’s mailing address for bills and correspondence;(v) The location of the taxpayer’s banks; and(vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.