capital gains and partial exclusion

[Adam Widder]

BP,

We're looking at buying a SF for us to live in for the short term verse rent for the next year before we move approximately fall 2019. We'd like to make some money as the house we're looking at has good bones, but looks like the 70s walking in. Here's the numbers:

Purchase: 136k, 5% down = $6800 + closing costs and prepaid insurance will be roughly 10k down

ARV: 175-180k, have to see how the neighborhood does in the next year, my realtor firmly believes 180.

Rehab: 15-20k, all done by us.

So after putting 20k into the property, that leaves roughly 24k of capital gains tax.  If I sell it fall 2019, because we're moving, would partial exclusion allow us to keep most the 24k in profit?

Or, is there another strategy you think would work for us? We'l only live in it for a year maybe 18 months depending on how long my wife stays, but I'm definitely leaving fall 2019.