If you pay the surcharge of 2.5% that's $3,750 so you net a gain.  

Not giving tax advise, so check with your CPA, but I sold a rental after it was my primary for over 2 years and as long as it was considered my primary residence "2 of the last 5 years", I did not have to pay capital gains on my property sale up to the IRS limit. 

These have been very grounding.I don't want this feed to turn into a chain of the same type of comments so I'll bring attention to what matters the most - two quotes from my original post.Thanks again all:)

You will have to do something unique to make it effective & useful to you... because it's always no pain, no gain!

Many investors in the Bay Area are turning their attention to midwest markets, such as Ohio, in search of cash flow opportunities.

So I would start closest to infrastructure and work my way back.I would also pay attention to crime statistics and try to go for the least amount of crime relative to the area

Hi Fellow investors, I have been using BP to gain insights in real estate investing and have been applying them in my townhome rental units.

Other options could look like a property closer to you or in an area you are more familiar with, could be turnkey options with an established company, could be partnering with someone to gain some experience. 

I thought all 30 year mortgages require only 12 months occupancy.It seems to be a lose-lose since the lender loses the interest on an otherwise good loan if it had to be sold, and they gain nothing.  

The knowledge you gain from it will enable you to grow 10X in the future.