If your investment horizon is short, be sure verify that your state's homestead laws and bankruptcy rules won't allow this co-owner to exempt this home from debt collection. 

UNLESSYou meet one of the IRS' exemptions for why you sold.

What portion of the $500k is capital gain (or exempt from gains if this was your personal residence)?

I was researching some of the rental housing application process for Baltimore MD : https://www.baltimorecountymd.gov/Agencies/permits... and found this contact information : "If you have questions about the registration or exemption process, email the Department of Permits, Approvals and Inspections at -- or call --."

@Matt Brown I am exempt from the VA loan fees as I collect VA disability.

PPM start with "Private" and the law favors those with a pre-existing relationship.Depending on which 506(c) exemption your PPM takes, some of the ideas you listed are a violation of the law and could get you in serious trouble. 

@Matthew Wright Yeah, there is no “exemption” on cap gains, other than a 121 on a personal resid nice.As for the 1031, if you want to reinvest anyway, it makes sense.  

Once you get beyond the basic “exempt assets” you need an experienced attorney who specializes in asset protection.

The thought of loosing out on the primary residence tax exemption makes me cringe. 

The $250/$500K exemption doesn't even come close to making a dent.Originally posted by @Andre Debs:you don’t have to pay a capital gains tax when selling a primary residence on the first $250,000 of profit, or $500,000 if married.