This rule ensures any deflation in value occurring while the property was held as a personal residence does not later become deductible upon sale of the rental property.

how did you do a private loan on an owner occ 4 plex.. did you follow dodd frank rules and have an MLO do the deal for you as the law dictates. ?

@Jay HinrichsIt all smacks of something for nothing and if you just buy these little coupons, everything will change for you because Charlie P. knows the insider's rules to how the sausage is made.

You can rent it out, but for less than 3 years (the rule is lived in it for “at least 2 of the last 5 years”) and still get the cap gains exclusion.  

It is a fundamental rule to investing....leverage increases risk.  

Without significant effort employed in this "business", you run afoul of hobby loss reporting rules. 

That rules out a lot of loans.

She knew the rules better than I did (because that's what she did for a living) and saved me from myself more than once when I suggested something she knew was risky.

Sounds fantastic! 

I'm  not sure about the rules in Texas but every state requires you to pay your fee yearly to keep it current with the state, so yes if you have Texas properties don't let your LLC lapse or if you get sued because of one of those properties,  you will not have insulation from the tenant or plaintiff.