- Do I qualify for for a section 121 exclusion sense I lived on the property for the first 2 years of ownership?

The Owners Agreement has been a big help as it delineates the exclusive use/rights and shared rights to each area of the property. 

I do not think options 1 and 2 are mutually exclusive, in fact I think you should do both. 

I had 3.5% rate, did a lot remodeling and heavy lifting, and decided to sell due to the 2/5 capital gains exclusion.

I went nuclear when I heard that one.. 44 years of selling real estate never heard of hey we cant talk to you for 60 to 90 days.. this got people all charged up like they were in some exclusive club and lucky to just get an appointment.. classis bait and switch type techniques.. nothing here was Random from Morris this is extremely well conceived and pulled out all the stops in regards to high pressure sales tactics. 

Many of the things that made CA the titan have changed, CA does not have exclusivity on it as before.

Speed and cost/tax-efficiency are usually mutually exclusive.  

It's not difficult to do exclusion work... learn how and do it yourself.

@Jaren Woeppel I own a management company that focuses almost exclusively on the management side for revenue and has right at 700 doors under management.

Keep in mind that these homes are sold "as-is," so a thorough inspection is crucial to identify any potential issues that could affect your renovation budget and timeline.Special Requirements:Freddie Mac has a "First Look Initiative," which gives owner-occupant buyers an exclusive opportunity to purchase homes before investors can submit offers.