Now I admit that everyone is not Manning, although a lot of us aspire to be, in character and as a player both, but my point is that a lot of people have very valid reasons for renting - people from all walks of life and people at every income level.

But I think you're overplaying it's attributes and attempting to minimize the Bay Area's influence.

Hopefully, you know the character of the dealmaker/syndicator.Is the deal good?

The house is small, but has character and close proximity to a lake, making it a property we do not wish to part with. 

Although John qualifies for the capital gain exclusion because he used the home as his primary residence for 2 of the past 5 years, 50% of that gain does not qualify for the exclusion because 2 of the 4 years of ownership were attributable to non-qualified use.

The stains and marks just added to the character.

In banking, this is called the 3 C's: Character (from credit score), Capacity (stable income), and Capital (down payment, reserves).

@David Fields I empathize with because I too have similar attributes to yourself.

Any interest on a loan that is attributable to your investment in the property is also deductible.

A portion of the gain is attributable to depreciation.