Lived in SFR, 2015-2020. Section 121 applies if it's now rental?!

[Jason V.]

Tried to be as self-explanatory with the title, as possible, given the character constraints....

I was considering using Section 1031 on an investment property, and then exchange with another investment property.

But then I found out that Section 121 (0% capital gains up to $500k?) applies to my primary home, which is defined as having lived there 2 out of the past 5 years (began renting shortly after getting married).....

Am I correct in thinking Section 121 applies to the sale of a house I've been renting for 1 & 1/2 years?   .... So long as we realize we can't sell my wife's house under Section 121 until 2 years after the sale of my house?!?

Thanks in advance!