Another option is moving out of your place and doing a house hack.

Hi Linda,Lots of great advice from @Carla Gordon @Brian Schroeder @Jay Thomas Specifically I think it's always smart to check out FF Traveler sear https://www.furnishedfinder.com/housing/New-York/New-York) and Airbnb/VRBO for 30+ days stays to gauge what sort of similar properties are currently out there!

Granted, I am a part-time flipper, but most houses I see the pricing does not make sense for what I have to pay for labor.  

I first started out in Real Estate by house hacking in college. 

Buying a new primary residence has nothing to do with the capital gains exclusion.It is when you go to sell the new house down the line you'll run into a problem.

Letting Go for Your Bottom Line: A Lesson for Real Estate InvestorsHey BiggerPockets Community,If you’re a real estate investor, whether you own rental properties, flip houses, or manage syndications, there’s a critical lesson that could boost your bottom line: Letting Go.Many of us get into real estate because we want control over our financial future.

Are you looking to house hack?

•For your next purchase, check if you can leverage FHA financing again—it’s one of the most powerful ways to scale quickly.Resources to Learn More•Due on Sale Clause & LLC Transfers: Nolo.com•FHA Loan Rules for Multiple Properties: HUD Handbook 4000.1•Scaling from Single-Family to Multi-Family Investing: “The House Hacking Strategy” by Craig CurelopHope this helps!

I'm thinking of buying this as a rental, renting out the house and fencing the back part and renew a lease to rent it separately.

Have you thought about house hacking?