If you sell at that point, you should see some appreciation and be able to benefit from at least 2/5 of the Cap Gains exclusion.Just be smart with your lease agreement so that you have the flexibility to sell when that time comes.

I think this is totally doable, assuming I'm smart with lenders and analyzing deals.

Quote from @James Rowan: Starting with an FHA property for house hacking is a smart move, especially with the flexibility for self-employed folks.

Yeah the 4% in my HYSA is nice but if I could invest in a house that returns more money with less money put into it then I feel that’s the smart thing to do?

Thanks for reading and please let me know what you smart large pocket investors are thinking for investing in this market. 

People will throw out XYZ percentages and say don’t do it, but what I’ve have realized is that it’s one thing to ask someone’s for advice vs being able to do a smart deal.

Roommates are a smart idea to tackle the expenses, but don't forget the unpredictable.

Good Investing... being in CA the seller most likely if they are smart with do an AITD not a second.

I have seen a lot of people who get in to real estate with some amount of money, spend cash to scale but never take the time to build the processes for their business first.Good luck, be smart with when and where you spend money and you will do great!  

It's a tough decision, but taking your time and weighing all your options is a smart move.