You are still in your window where you can sell the property and exclude it from federal and CA capital gains taxes as your primary residence. 

Because of this, the federal government can't pursue it.

The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac (the Enterprises) will conclude their single-family rental pilot programs and then terminate their participation in the single-family rental market except through their previously existing investor programs – Fannie Mae’s Multiple Financed Properties and Freddie Mac’s Investment Property Mortgages.Not trying to discredit anything, but this was a 2 year pilot program.... seems like plenty were able to do ok prior to that, wouldn't it be likely they could continue after as well?

You'll sign documents at title saying you understand its a federal offense if you lie about the occupancy status.

Keep in mind interest rates will continue to rise based on the Federal Reserves recent comments just something to keep in mind.  

I have a small 600sqft 1 bed/1bath, 2 story row house with a roof top deck in Federal Hill (21230) area of Baltimore City.

If you LLC simply owns the property, it's not clear how that would affect your state and federal taxes since the property is being used by you for personal use.

I also mastered the county real estate deeds and mortgage recording system, the online county court records, the marriage license bureau records, federal census and SNAP data.

Received a $1M offer on a 16 unit building that I purchased back in March - leaving me with a nice profit.However, I am expecting 30% in short term capital gains between the state and federal and a prepayment penalty of $6000.00.Thus, unless I can 1031 into another deal...this transaction may be tough to put together.Any ideas on how I should source deals and find a way to defer my taxes?

Hey Don, you can also try hitting up Dan Grubb at ABNB Federal Credit Union to see if there's anything they can offer.