There are may other ways to do it but the point being, you are not only buying a primary residence for you to live, but it also is an investment because it is bringing in money for you every month.

I am purchasing my first rental property (multi-family) unit in Salisbury North Carolina. 

Investment Info:Single-family residence buy & hold investment.

Or sell using the 1031 exchange along with a partial 121 primary residence exemption There is a way you could take advantage of the 121 primary residence exclusion allowing you to take the first $250k of the gain tax free ($500k if married) and qualify for a 1031 exchange.Say you purchase a property as your primary residence (house hack extra rooms for extra income) and lived there for two years while stationed there.

Benefits of the ATI ExemptionThe ATI exemption offers several key benefits:Reduced Tax Burden: By lowering the assessed value, property owners can significantly reduce their property tax bills, freeing up resources for other investments or operational expenses.Encourages Investment: For real estate investors, the exemption makes South Carolina a more attractive market by reducing the tax impact of property acquisitions.Substantial Tax Savings: The reduction in taxable value can lead to considerable property tax savings over time.Multi-Year Benefit: The exemption can apply for up to five years after the sale (based on SC revaluation cycles).Wide Applicability: It’s available for various types of properties, including multi-family projects, commercial properties, and even vacant land for development.Who is Eligible for the ATI Exemption?

The farther out people have to commute into DC, the more valuable residences close to town are and forever will be.  

If you convert into your primary residence you still have to recapture all depreciation. 

In fact the properties I bought here specifically for cash flow (multi families in mediocre locations) did not end up performing as well as my other properties over all, so I sold them and put that money into more properties with less upfront cashflow on paper but better overall returns. 

We spend far too little time looking for small multi-family deals in this area for the reasons you listed although we would look closely at an off-market (perhaps owner financed deal).

We have a single-family residence we own and have lived in for a number of years.