I live in San Diego and am trying to purchase my first investment property I have about 150K to put down but am struggling to find deals that meet my price point. 

I truly believe she had a medical condition and shouldn't even live in my house, should probably live in elderly housing or the like.

My plan is to sell my primary home in New York and purchase a house to live in South Carolina.

Is the basement legally considered living space?

We live in a litigious society and people are sadly looking for ways to either get something for free or more. 

Your primary residence - if you've lived in it for 2 out of the 5 years prior to selling you'll get the $250K/$500K tax free iike @Clint Galliano said. 

If you are not planning to live in the property, then you are not going to qualify for an FHA loan.

My sister and I have done all the leg work in finding where the 2 individuals lived at. 

Quote from @Kornelius Friske: We have a STR located in peoria AZ. it's 6 beds (garage conversion) and about 3900 sq ft in total. our energy bill last month was $450 and has been hovering in the $350-$450 range since we went live in august.

I grew up near San Francisco and moved to Reno, NV to live and house hack.