@Jeremy Martin if you lived in the house for more than a year I believe you get a $250k exemption on gains regardless without having to do a 1031 exchange.

Do you need to setup a fund before closing to take advantage of the 10 year tax basis change or capital gain exemptions? 

Month to month attract people whose house has been temporarily tended uninhabitable, people who have just separated from a spouse, people who have just moved into the area and are waiting to close on or are building a house, people in for medical treatment, people visiting family, people with temporary job assignments, and people whose life is “in flux”.The income from the property, as well as the expenses, will be listed separately on your tax return.

"I am not intimidated by your $5 words and legalese" --BrutalThe verbiage in the letter sounds more like a medical dispute than anything.

Link to Fannie Mae "Due on Sale" exemptions with transfer to:a limited liability company (LLC), provided that the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).Here is the link: https://www.fanniemae.com/cont...

Here is a link ( https://www.fanniemae.com/content/guide/servicing/d1/4.1/02.html) to Fannie Mae exemptions to "Due on Sale" clause that includes the following: transfer to a limited liability company (LLC), provided that: -the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, and -the LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence). 

Also looking for: deed restrictions, tax exemptions that could affect the property later. 

She proceeded to tell me that her daughter will not be living in the house anymore because she had to withdraw from the university due to “serious medical issues”.

As for the second time, the tenant had a medical issue which caused her to fall behind. 

If one of your workers (including your friend) get injured on your jobsite you could be liable for their medical costs and disability.