Simply own and live in the home for 24 months of the past 5 years from the date of sale, and receive a tax benefit of up to 250k of excludable capital gains from tax or 500k if married and filing jointly. 

If you're in a diverse market and opportunities for either single or multifamily properties will support your ROI goals then I say don't exclude either segment in your search.Regarding your comment that a multiplex may be riskier with lots of maintenance & vacancies, this is only true if you let it be true. 

I was advised that the depreciation taken during the years it was rented is not excluded from the exemption. 

Essentially, the cap rate is the proportion of Net Operating Income (NOI) to the property's value or selling price:Cap Rate = Net Operating Income (NOI)/Property ValueThis ratio offers a direct method to evaluate the yield a property generates in relation to its cost.For advanced real estate investors, integrating additional factors might prove beneficial:Vacancy rate: The duration the property remains vacant.Operating expenses percentage: Includes insurance, utilities, and maintenance costs (excludes mortgage payments, depreciation, or income taxes).The adjusted formula for net income, incorporating these considerations, is:Net Income=(100 − Operating Expenses %) ×(100 − Vacancy Rate %) × Gross Income

Even if that were the case, will the lender allow you to exclude, most likely not. 

First, allow me to define small value-add Multi-family, I speak with a broad brush.. anything legally zoned duplex up to 50 units (I'm excluding Class A-B big MF) To set some context, most of the investors that reach out to me are not from Charlotte, or are not intimately familiar with the market here.

Purchase : $130k (triplex)ARV: $160kRent: $1,740, excluding utilities What made you interested in investing in this type of deal?

Well, excluding the single family home that I am planning to rent out in NC in the next week which started as my primary home, this truly is my first multifamily home purchase with an intent to invest.Now, to answer your question, is it wise?

Many places followed this with some excluding babies from the calculation.

If experts can ballpark, how much will it cost to build a quadplex(excluding land cost)?