Normally in a spot like this, we would recommend to a client that you sell your primary residence and claim your capital gains exemption under Section 121, but you have two strikes against you: (1) you have not lived in this property long enough to qualify for that, and (2) I'm hoping you already claimed an exemption on the sale of your other primary residence a few months ago, and you can't claim Section 121 exemptions within 2 years of each other. 

Might save you some $$ in the long run.

On a related note, how long after you have rehabbed a property and get issued a CO can you apply for the property tax abatement?  

Set short and long-term mone­y goals.

Our DSCR programs go up to 80% cash out and have NO seasoning requirement as long as the property is improved, which is the case on your deal.Would love to jump on a call!

I cover Indianapolis and the surrounding ~30 miles and have clients doing both strategies.

And building a 2-4 unit is possible in one of those scenarios as long as your lender can do it.

Quote from @Jinesh Patel: Any help appreciated.Short answer: no immediate tax savings from regular rentals as long as both of you have regular W2 jobs.

Successful investors don't get caught out (insert surprise) to win the long game.

I guess this adds even more confusion in that the second home requirements state renting it is fine as long as it follows the guidelines, not that it’s forbidden outright.