This exclusion can be used once every two years.Partial Exclusion for Reduced Use: If your dad is selling his home due to a change in health, employment, or unforeseen circumstances before meeting the two-year ownership and residence requirement, he may be eligible for a reduced exclusion based on the time he lived in the home.Purchase of a Smaller Home: While your dad intends to purchase a new home worth less than his current one, this won't qualify as a 1031 Exchange (like-kind exchange) since personal residences don't qualify for this type of exchange.

Where if you are financed on the FHA loan you will need to keep that house because your loan amount is too close to the purchase price.When I talk with my clients I look for the most flexibility to protect their portfolio and give them exit strategies if somethings unforeseen happens in their life.Tim ** I would encourage you to take out a bigger HELOC say, $150,000 to $200,000 but only borrow the $93,400 or what you needed to make the purchase happen.

Unforeseen expenses can reduce profits significantly, necessitating thorough property inspections before purchase.

The pillars of our local economy remain strong and improving, large amounts of migration to Texas cities is still in progress, new businesses are arriving (especially like the California giants making the leap to Texas), positive COVID vaccine news, and all the things I mentioned in the post should hold firm barring any major unforeseen meltdowns. 

I'll add another unforeseen hurdle- Pain and Suffering. 

I would call the landlord like an adult and tell them I'm sorry, and that unforeseen events occurred and I'll never let it happen again.

In my experience I have found even good tenants have life circumstance or unforeseen economic hits come that they are not prepared for. 

Unfortunately, I take the position that this sale will not qualify for the "unforeseen circumstances" test as the developer buying up the neighborhood improves your financial position.

And that could blow back on me as the new owner, in unforeseen ways.At the risk of sounding paranoid, all it takes is one person to say "Gee, it'd be a shame if an anonymous tipster told the county about your non-permitted work, why don't you let us take this headache property off your hands? 

If any unforeseen complications arise, I'll follow up on this thread for the sake of others curious about the subject in the future.thanks again, Rob