You can sell the coop and purchase any type of real estate you want.The rule for the primary residence exemption os that you have lived in it for 2 out of the 5 years prior to selling. 

The rent pays the mortgage for on all homes and my primary, secondary and my mother in laws home. 

Dont feel like you need to rush into a primary home.

My criteria is as follows:1- Primary goal is appreciation over the next 5/6 years, cashflow positive preferred but cashflow neutral at a min.2- Preferred portfolio - Duplex & SFH in TX or Duplex each in TX and FL.3- Area of interest - I-35 corridor by Austin TX and Cape Coral/Lehigh Acres FL.4- Focus is on new construction properties for obvious no immediate maintenance needs and Developer incentives on interest.I know Austin is a no brainer but I would like to get your expert opinion on Cape Coral/Lehigh acres FL area.

Hey Zaheer, That happened to my dad when he bought his primary residence.

(130-150k range). ( I do not live in NY so primary residence loans would not apply).

This won't work for urban areas or non-primary residences, and would have to be single unit, but if you'd consider doing something like a live-in flip you could look at USDA:RD loans and then refi to hold or just sell.

Has anyone used an all in one on their primary residence (or not used it and are willing to share why)?

We're closing in a couple weeks on a 5-room motel in the Tahoe area that also has a 4 bed / 2.5 bath / 3000 sqft SFR "manager's unit" that will be our primary residence. 

The city has made ADUs very easy to permit if it’s your primary but I don’t believe an investor would be able to add one with a separate meter.