I use Airbnb exclusively for all my rentals and there's hardly a day not booked.

The 2007 mortgagee is currently foreclosing however I have not found an auction date yet in any news paper. 

Let's assume the big concern are the tax implications since the projected gain before the exclusion is $1.2M; see projected gain calculation below.

They they hit the news, then newspapers pick those scenarios up, I've read many reports of work for equity not working.But the devil is in the details.   

The BTA ruled that “where the owner of rental property devotes it rental purposes and exclusively to the production of taxable income, the property is used by him in a trade or business”.On appeal, the 6th Circuit came to the conclusion that the building (rented to multiple tenants) was a TB, but they got there via different means.

If you were going to live there for 2 years and rehab during that time then it may make sense to live in one of the units for this $500K exclusion.

For example, if I want to sell a five-unit multifamily in Washington DC, it seems these agencies will market almost exclusively to their own clients -- and thus end up on both sides of the deal (dual agency). 

I believe it is an exemption as far as reassessment goes but then my follow up question is -- when the original owner now sells his/her primary residence with the RDP on title is the capital gains exclusion still $250K or does it bump up to $500K, or is that only for married couples?

It will still be a tax-sheltered retirement plan and everything has to be done at arm's length and exclusively for the benefit of the retirement plan. 

Currently we work with the following guidelines when it comes with agents no agent exclusive agreement for a time frame but if a property is shown to me I will use them as a listing agent (this is the exclusive agreement) and if the agent points something out to me that is one the MLS, the first agent to email me it (not hotsheet it) will represent me.