Similarly, the sale ($575K) minus your adjusted basis determines your capital gain.You may qualify for the primary residence exclusion (up to $250K single/$500K married) if you lived there 2 of the last 5 years.

The loan is with you, not with your tenant, so none of that means anything to them - in fact because you live in one unit and it's under 4, if you were self-managing you don't even have to abide by fair housing laws (at least on the federal level). 

He's lived in Japan a few years as well (Fukuoka, I believe).

What adds complexity to our plan, is that we live in Minnesota.

Quote from @Jemini Leckie: Hello,I live in a mountain west state, not California.

We live well, have a nice house which I built from the ground up and saved 200k off the top. 

Especially if you built something to rent or live in. 

In the unlikely event that you are the exception that proves the rule, the rare 18 year old who can actually generate a serious income by wholesaling real estate, your day to day will look like the following: - You will door knock, cold call, send mailers, and otherwise create lists of people who are in the most desperate moments of their lives. 

I live in Elkhart, IN. 

Investment property (not primary residence) It's the industry standard if you're not going to live there.