So if I understand this correctly, by qualifying to extend the 5 year rule to 10 yrs, $250k if single or $500k if married of proceeds from this sale would be exempt from capital gains? 

No, ok, rule in your favor.

You better reach out to them days before the auction and give them a simple choice: allow foreclosure sale  to occur or allow you to take it over from them, with equity justifying your purchase.    

I made it a solid rule - no illegals on my jobsites.

Non conventional just means the loan will not be sold to Fannie/Freddie so they do not have to follow those rules.

To achieve this, I’m planning to scale rapidly by performing a couple of syndications to acquire a larger portfolio.I currently have a portfolio of 17 properties, but to justify labor costs and create a sustainable structure, I need to expand quickly.

I will not comment as to the tax laws and underlying rules - that is a discussion you can have with your tax advisor who presumably you are paying to help you.What I will do is provide practical and business guidance on tracking time.Firstly, there are apps available that can assist with time tracking where you can specifically detail your time, who you met with, etc.

I would put it in your listing details and also potentially house rules. 

@Polat CaglayanI've never seen a formula but here is a general rule of thumb for multifamily:The class of an apartment refers to the quality of the building, which can be determined by a number of factors, including age, location, and condition: Class A: These are the highest quality apartments, typically built within the last 15 years.

Don't focus on a "rule of thumb" as a rookie.