@Edgar Duarte Selling now under the primary residence exclusion avoids capital gains taxes, allowing you to reinvest the $500K equity in diversified assets like index funds or additional rental properties.

Even then, the IRS may scrutinize the transaction if it appears the intent was to immediately convert the property into a personal residence.Additionally, if you eventually sell the property after converting it to a primary residence, you may qualify for partial benefits under the Section 121 exclusion for primary residence gains.

We operate a real estate, mortgage, and property management firm dedicated exclusively to Short Term Rental Investments.

Converting properties to multi-family is considered extensive rehab and those programs are a little more exclusive than the standard bridge loan programs. 

If you move for a valid reason like new job, you can pro-rate your gains exclusion.

Once vetted, I compile this exclusive list and share it with my clients.

Hi, @Celine BessonI work exclusively to help my out of state investor clients find great deals in the Memphis real estate market. 

New occupants will be coming soon, but in a 3 family, i have set of excellent student tenants that renewed.That said, many landlord insurance policies have exclusions for students, so I am trying to gather info on updating a policy to consider the fact that the building is only going to be 33% student occupied.  

Here would be a reasonable case if you sold the property while getting the section 121 exclusion.

We did not know if our proximity to Nashville would be more important because of the fact that we would be doing a short-term rental with the property for half of the year and then using the property exclusively as a rental in a few years?