From what I gather their primary tactic is to disallow enough hours to get you below the 750.Calendar and log was mentioned as essential in every article.

You're likely seeing the property go back to the certificate holder because no one was willing to pay the minimum bid, which is essentially what the certificate holder has spent out of pocket.  

If I'm recording the revenue from the STR and other expenses under my business filing, does the purchase of the asset and depreciation, etc. also need to be recorded under my business or since it's also being used as a vacation home, can I realize those tax benefits under my personal filing? 

So essentially, my property would become a hard money lender for me lol.I think it is important to note that this house hack is my only investment property and contains the majority of my wealth.

A tip I can give towards this is working with a bank that is local to your investment market, as well as one that allows you to count your potential rental revenue towards your approval (for multifamily). 

I personally would invest maybe $400,000 to go ahead and purchase two multi families(preferably quads) at the $800,000 pricepoint.Sit on the $130,000 as reserves just incase you need to fix up anything in the house.Consider putting some of your future cash-flow into 529 plans for when your children plan to attend college.You should be eligible for social security in 10-15 yearsYou can also start out taking money from your 457 planAll in all, if everything is nice and dandy, you should be able to factor in $15,000 a month in gross revenue from your pension, social security, rental income, 457 account distributions.Best of luck

You essentially bought this deal at the bottom of the market back in 2010 and it still only cash flows $100/month.

Essentially I was just hoping the appraiser wouldn’t put the appraisal in the $800K-$900K range.

You would disturb the tenant's right to quite enjoyment by renovating the house and then you would essentially change the terms of their lease by adding another roommate to share the kitchen, bathroom, living room, parking, etc.

I could imagine a scenario where taxes owed could exceed cashflow if this is the case, but that doesn’t seem right 🤔 example:Gross STR revenue = $100kAnnual principal only pmts = 60KOperating expenses = 20KNet Cashflow = 20Kdo I owe taxes on only my cashflow of 20k, or do I owe on my combined cashflow + principal pay down of 80K?