I’d fix it up and list it to sell after I’d been there two years to take the gain tax free.

Cancel after you pull, unless you like the tools it offers. 

Selling and buying something else you want keep and doing a cost seg in would help with the tax burden probably better in this situation.

My son currently lives in the townhouse b/c he is going to school and works in the area.Since he is young and starting out in life, I would like for him to only cover the basic costs (taxes, HOA, utilities) just enough for me to break even (I believe that will put him slightly little lower than market rent rates). 

Instead, You get to use the tax for your own benefit and purchase better property/ properties.

Best to check with a tax pro to ensure compliance!

It's a good practice to overestimate costs and underestimate after-repair values (ARV) to keep your expectations realistic.

After the operator exceeds 90 days in a calendar year, the conditional use permit process must be started.

I am about to graduate college in May 2025, and will be making about $120k (pre tax) in my full time job postgrad (Washington DC area).

And it can work really well for you as long as you pay attention to the statute requirements.In order to defer all tax you are selling investment real estate and buying investment real estate of at least the same value you sold.