Not sure how you get to 50%.Here's a post that explains this:http://www.biggerpockets.com/forums/52/topics/65109-does-rent-from-primary-residence-reduce-my-debt-to-income-ratio?

These lenders typically want the borrower to reside within 100 miles of the property, and many want the borrower in the immediate area.

Quick history: I currently own 2 homes. 1 S8 rental, and 1 primary residence.

The question is, is there a way for her to use the money to buy a home (primary residence, not rental or vacation) without having to pay taxes on the "income"?

We can't figure out if we qualify (it wouldn't be our real primary residence - our rented apartment would.)

Sometimes I get calls from people about their primary residence, when the the target was their rental property.So for me, it seems marketing is what is working first and targeting second.

I ask this because these funds are ear marked for use in retirement, a long term investments and can be effectively used to leverage your return without having to re mortgage your primary residence.

They may attack the validity of the lease and those issues are stated.HUD regulations apply to lease terminations when housing is subsidized.A lease survives a purchase, except when a buyer purchases a property as an owner occupied home and 30 days may be given or a lease may be brokern with 30 days when an onwer has for any reason lost their primary home and has to take the property for their residence.....all state by state determinations, but you may have such exceptions.There are also other covenants in a lease other than just paying rents and if there are other significant covenants broken a lease may be terminated.

As a Northern California resident I found this interesting: http://www.businessweek.com/news/2012-05-30/toll-buying-half-of-a-2-379-home-california-subdivision

It should also allow him to "see" or "share a table" with his best friend and video conference with other iHousing residents.