When you talk to finance people they act like they are lawyers.

If losses strain your finances, selling might be the best move, but optimizing rental income or tax deductions could make holding worthwhile.This post does not create a CPA-Client relationship.

I see it promoted by gurus that they'll pay 110%+ of FMV if they get the financing in place and no balloon.

I don't think you will find it, but if you do, it'll cost ya.It sounds like an amazing house hack if you can move your life around to make it your primary (and the financing will get MUCH easier).

As already mentioned, you could sell via seller financing to lower AGI, as all you would have to claim is the payment income - until balloon payment received.Did know an investor that had 14 properties paid off and he moved into one every two years to then sell with the $250k single exemption.

Some have done owner financing with an agreement to pay all interest and equity splits when the home sells others have done it where they do a quitclaim adding their name onto title with the seller so once rehab is done the seller can't try and cut you out of the deal. 

To thrive in real estate investing, you must maintain a firm grip on your finances.

With a 203k Renovation loan, you can also finance in your payments if you are doing a major rehab. 

Now we are mostly scaling our business with larger communities but I've used many different creative finance strategies including seller finance, private lending, hard-money, collateral from other properties, and lease-options. 

Things like neighborhood trends, tenant demand, and financing options will shape your strategy more than a basic 1% rule analysis.2.