The first year was challenging meaning had a tenant but not saving, it was just making my living expenses cheaper.

.- The townhouse you're moving into is currently a rental, but you plan to live there two years for the 121 exclusion.

Is the basement legally considered living space?

I live in SoCal so if I wanted strong cash flow I would likely have to look out of state.

When I tried to get it when my side of the family found out and tried tp take over reverse mortgage payments to bank because she had died it was to late so they sold the house to Hud and then other reverse mortgage companies but a relative still lives there so they can't kick them out.

I am from Phoenix but lots of family from the Seattle and surrounding areas.My wife and I have been doing live in flips since 2019.

You could bring less down and possibly have a lower interest rate since you will be living there.

When you live in that duplex for 2 years and then sell you'll be able to take 50% of the profit tax free (the allocation for the side you lived in). 

Hopefully you guys can help answer this for me......I live in West Virginia and primarily invest outside the state. 

If you're ever looking to chat more about investing strategies, or need any advice as you start your journey, feel free to reach out.My plan is to kick off my investing journey this year with my first live-in flip.