While the FHFA has placed annual volume caps on the GESs for some multifamily loans such as market rate apartments, certain types of affordable and small multifamily properties were excluded from these caps in 2015 and again in 2016.

However, it is my understanding if I decide to rent out in the 3rd-5th year, then $100K ($50K each year x the first 2 years I have lived in) will be excluded from tax but the 3rd-5th year, meaning $150K ($50K x last 3 years) will be taxed because I do not live there as my primary residence as it is being rented.

Excluding carry.. commissions..closing...contingencies ..  

Plus any applicable state tax AND excluding depreciation recapture which is maxed at 25%.

Get Real Estate Brokerage licenseRequires me to have a real estate license for 5 year and practice the last 2 year prior to getting the brokerage license.12/2021-3/2022 Real Estate Licensing FEE(does not include REALTOR Or BROKERAGE FEE) Real Estate Class (Audio books, Extras) 299 Application Fee 89 Fingerprinting 60 Practice Test 20 Test Fee 32 Post Test Class 119 Subtotal 619 GMAT Book 144 Test 250 Subtotal 394 MBA Pre-requisite module 3000 In-state Tuition 16617.24 Online Class Fee 1800 Documentation Fee 100 Subtotal 21517.24 CPA Self-Study Review Course 1300 Apply for 2 section AUD + BEC 536.60 Apply for 2 section FAR + REG 536.60 Reapply For REG (Retake Exam) 271.25 Self-Study ethics exam 125 Initial CPA certificate application 165 Subtotal 2934.45 Summary of fee Excluding Brokerage License Real Estate License 619 GMAT 394 MBA 21517.24 CPA 2934.45 Real Estate Brokerage License ------ Subtotal 25464.69 So this is my plan thus far.

This excludes a large number of buyers at that price point.Finally, if you've rehabbed this property and owned it less than 180 days, your FHA buyers will have to get two appraisals, or one and a desk review, that give it value.Your best bet, given the info, is to pull the property and re-list in a few months.

The 121 Exclusion allows you to exclude up to $250,000 in capital gain if you are single and $500,000 in capital gain if you are married from your taxable income. 

Will the caveat of having to obtain financing exclude me from most wholesalers that are seeking cash buyers? 

However, I don't think you can exclude an entire city for investing, but the deal you have above is crap, unless you can get significantly higher market rent.

Excluded from these requirements are sales of property with 1-4 dwelling units that has never been inhabited, sales exempt from real estate transfer fee, and sales by certain court-appointed fiduciaries (for example, personal representatives who have never occupied the Property).