Hello!

I've been lurking on BP for the past several...years #2015 and have been encouraged by recent podcasts to jump on and ask a few questions.

A little background, I purchased my first single family (4 bedroom, 4 bath) townhouse in early 2016 in Virginia as my primary residence with the intent to have roommates. I am in my mid-twenties and single. I put 20% down so a good bit of cash is tied up. I currently rent out 3 of the 4 rooms in my house, (it is not a duplex or triplex, so all under one roof) to 3 ladies to help cover mortgage, tax, insurance, etc.

I am trying to figure out what is the best tax strategy for 2016/2017 for investors who have tenants living within their house. So not separate living spaces (like a duplex or triplex).

My goal is to probably liquidate the asset at the 2 year mark and invest the no taxed capital gains + downpayment + mortgage principal towards real estate outside of my primary residence so I would ideally like to keep it (from a tax standpoint) as my primary resident vs. doing a 75% rental & 25% primary etc. as the numbers don't work out to keep it long term as a rental. The asset has appreciated 20k since purchase and think it will appreciate an additional 15 - 20k by early 2018 with current neighbors who have sold.

I have kept track of all expenses with printed receipts for power, internet, gas, etc. I don't have a ton of repairs to potentially write off (about $150 for 2016 as it is a fairly new construction) so I don't think that would be a huge tax break.

Any ideas on potential tax approaches on ways to handle the rental income and still get the tax benefit of no tax on the capital gains? Thanks in advance for any advice! :)

P.S. Any recommendations on CPA and advisor/strategist with a strong real estate background? I am looking to do some research and interview a few potentials to see who would be the best fit for me long term. Thanks! :)