Question about a selling strategy to minimize taxes

[Rob King]

Good evening,
  I have three properties in Honolulu, HI and am looking to sell two in the next 12 months.  My understanding is that if you live in a property for two of the last five years you are protected against capital gains to a certain extent.  I have lived in my current property for 16 months and would like to sell in January.  The property I would move into was my home for two years prior to occupying my current residence which I would then also turn around and sell.  I believe this would allow me to sell these two properties in a short time window without suffering tax penalties to then move into my third property while using the capital gained to move into an out-of-state market. 

  Has anyone used a similar strategy and, if so, were there any lessons learned you would care to share?  

  Thanks in advance for any assistance, prior to fully committing I will speak with a RE tax professional but also wanted to see what the large BP communities insights may be.  Have a great one and aloha.

[Wayne Brooks]

You can only do it once every 2 years. And for the full cap gains exemption, you had to live in it the First 2 years, and sell within 3 years of it becoming a rental. If a rental first, then the exemption is pro rated.