I would say if you want to move eventually, yes, planning to maximize the 500k exclusion is wise.

Google up irs Section 121 Exclusion.

There are also generally more exclusions than a standard policy. 

purchased from county tax auction) because those are very common and are special.I deal with one title company for those exclusively because they are the best at tax title, because they clear them like I cleared them, and they taught the landbank and other title agencies how to clear them,(eventhough some still don't know what they are doing)

Or is this exclusively to advertise for buyer leads?

✓Second Home Requirements  must be occupied by the borrower for some portion of the year  is restricted to one-unit dwellings must be suitable for year-round occupancy the borrower must have exclusive control over the property  must not be rental property or a timeshare arrangement1 cannot be subject to any agreements that give a management firm control over the occupancy of the property

However, you may be entitled to an exclusion/exception.It appears that you are looking for a second opinion.

Thank you in advance for your opinions and help.And if this went well enough I could just keep it long term rental and when I sell 1031 or I would have a few years to use my 121 500k exclusion.. 

If you fail to take exclusive possession of property within three years of the tax deed, or at least file an ejectment lawsuit against the taxpayer within that time, you lose all of your rights. 

Do you invest exclusively in your home state or nationwide?