@Robert TanakaIf you have self-employment activity, you should look at the Solo 401k to see if you're eligible.

She looked at FHA with 3.5% down and she didn't qualify without a co-signer because her tax returns only showed her making $20K after her deductions and expenses. 

In 5 years that’s $5000 per month plus all of the advantages of pay down on the mortgage, depreciation, interest pay down, property tax deduction and possible appreciation.It’s a methodical system.Good Luck. 

A serious tenant with a stellar record is more willing to lose a couple of dollars than one with a terrible record who know they have a high likelihood of not being eligible. 3.

It was an FHA property with FHA eligible ( owner occupied ) investors having the right of first refusal.

In the past I had always made extra principle payments on my rental properties and not on my primary as the mortgage deduction was beneficial. 

It's more accurate to say an LLC is a legal entity -- not a tax entity...at least at the federal level.The primary benefit of making an S election is the ability to reduce SE taxes by paying out a salary to owner-employees.If you're above the phase-in threshold for QBID (20% business deduction) and the trade or business isn't a Specified Service Trade or Business ("SSTB") an S Corp becomes even more compelling due to its ability to pay out W-2 salary and influence the QBID.There are a few other benefits as well as disadvantages to making an S election. 

Its all about deductions for business expenses.

Without lot of research I assumed if I lived in the property for 2yrs in the last 5yrs of the sale, I could be eligible for the exemption so I don't pay any capital gains up to 500k (I'm married). 

If you mean that you first filed your tax return showing high income to qualify for a loan, and then you filed an amended tax return to claim more deductions and reduce your taxes - this is a very bad move, potentially classified as mortgage fraud and/or tax fraud.