Case in point, in 2017-2019 while facing a severe housing shortage, Minneapolis enacted its 2040 Plan, becoming, “the first major U.S. city to end single-family exclusive zoning, opening the door for developers to build multifamily buildings on lots where a single-family home used to be (NBC).”

Either way, it doesn't make logical sense for the IRS to allow them the $500k married exclusion on both properties.

@Diane Jacob I have been in the Topeka area for 40 years and invest exclusively here.

That being said, when they launch their next fund, they are strongly considering a 506(c) offering.https://lastmileinvestments.com/While this is not a list of people I have invested with, I will say a lot of 506(b) operators hide in plain site:- Podcast hosts and guests (talking about what they have done past tense, not current offerings)- The gurus often also syndicate deals- Rise48, per their website, has primarily (if not exclusively) 506(b) offeringsThe thing is, depending on how conservative the compliance attorney is, you can have 506(b) operators advertising like there is no tomorrow.  

Lastly, if the home has appreciated at all, taking advantage of Section 121 and taking capital gain exclusions is just another strong point towards selling within the 5 years if you've lived there for at least 2 years. 

Some counties will only give you a list by email or tell you to look at the county legal newspaper, but many counties post a list on their websites, which are updated frequently. 

There is an alcoholic exclusion in most, if not all STR insurance policies, so no I would not recommend it.

*Note that we interchangeably use the labels: Lodging House = Rooming House = Single-Room Occupancy (SRO) = Co-Housing PropertyThe building has 3 kitchens and 4 full bathrooms, on 4 floors:3rd floor: The 3rdfloor is ‘off-limits’ to the 1st and 2nd floor tenants, so the two 3rd floor tenants enjoy the exclusivity of their own entrance, and a kitchen and bath shared only with one other unit, plus some distant ocean and Boston skyline views.2nd & 1st floors: Eleven units share 1 kitchen and 2 full bathrooms, one on each floor.

We use Airbnb exclusively and have done, well, fine.

Depending on when these properties were purchased, along with a handful of other factors, these two statements could be mutually exclusive.