I live in the Bronx, NY but my goal is to own an investment property in Philadelphia by the end of this year.

I have improved fair rental value and value by increasing the kitchen size; adding an island tearing down walls between the kitchen and dining area and living area, etc.It all depends on the particular property. 

.- The townhouse you're moving into is currently a rental, but you plan to live there two years for the 121 exclusion.

We currently live in our forever home with both of our parents on each side of us.

Sadly, we lost my mother-in-law to cancer two years ago, and my father-in-law has since realized he no longer wants to live there, though he remains emotionally attached.The home is in its final stages of construction, needing only finish work and a kitchen remodel to be rentable.

I also have registered my "rental company" with the state of Maryland, where we live. 

This requires 10% down and you typically just have to live in the property for 14 days out of the year.

Also, if it fits your budget and your business needs a write off BPCON lives up to the hype. 

The area where i live, land is very expensive.

This is where you live in one side.