In addition, the deals will be based on long-term rental outlook, but we are going to see how a mid-term rental strategy pans out for the higher cash flow in the short term.

When you sell your primary (living there 2 of the last 5 years), you don't make taxes on the first 500k of profit.

We are purchasing a flip property in Cape May, NJ and the septic system may be undersized given the addition of a guest house to the property.

Total leased income on the property will be $2000 or more per month, plus another small additional income the property offers ($100 to $200 per month).  

If you are wanting to learn more about how to protect yourself as the PML, check out the book Lend to Live: Earn Hassle-Free Passive Income in Real Estate with Private Money Lending available in the BiggerPockets bookstore!

For example, an employee of mine bought a cabin to live in in 2014 for $42K.

The other half of the increased value would be included in the deceased spouse’s estate.Community Property StatesIf you live in a community property state, things work a little bit differently.

I am very eager to start taking action and learning but live in a high cost of living market (Boston) currently and for several reasons (need to save more, move to lower cost of living place etc.) will not be able to start for at least 1.5 years. 

I think David Ramsey's points about living within your means and saving is good, but it doesn't apply to housing. 

Additionally borrowers could be asked to go once step further and provide copies of 12-24 month bank statements reflecting where the payments were withdrawn from.