@Curtis MaagSection 121 exclusion is given to taxpayers who sell when they lived and owned the property for 2 out of the last 5 years.The exclusion is $250,000($500,000 if married filing jointly). 

@Laura Askew Aunt and Mom should simply put you on the deed as Joint Tennant.

They've been dressed up over the years with new roofs, vinyl sizing, replacement windows, etc. but it doesn't change that they're structurally inferior to conventional stick-built houses of the same age in other areas.

Also put the roommate on the lease and make both of them jointly and separately liable for the full rent.

A joint venture could be a good option.

Two of which are not reachable.On the deed it clearly states husband and wife.The property was not probated and no will was made.I assumed that the survivor spouse gets the property since it was own jointly as husband and wife.

not sure if that area's economy has improved but I was looking at stuff pre GFC there and it was pretty depressed. although Its one of my favorite airports to fly into.. especially landing from the west and coming in over the ocean and Bay its a really cool approach and the 100.00 hamburger joint on the field was good. although i think it may have closed.To me its one of those markets you have to be super careful in.  

There is a very high level of trust here as we have done other deals with each other and on a joint basis also.

I never saw them chasing deals at 10 o'clock at night like I was or passed them on the road at 6AM driving for dollars like I was,  but I could always find them in a bar on Beale st. or sitting in a fried chicken joint spending money they didn't have on food they didn't need.It's just hard work.

Some options early on before the war-chest builds up can be partnering (Joint Venture) with an experienced investor you trust.