You could also consider combining your Section 121 exclusion with a 1031 Exchange (if you can identify a property in time). 

In my observation, many people incorrectly think there str is exclusively a real estate investment, it isn't.

Also, the one owner has lived there rent free for 12 years and will get capital gains exclusion for primary residence.

This is something that is not exclusive to Smartland, almost every property manger budgets like that, but I think it's deceptive and can be a big deal when you're already dealing with thin margins. 

Plus, some lenders might want to see 'national' tenants in the commercial space exclusively.

Dealers cannot do 1031 exchanges, cannot do installment sales, and cannot take depreciation, all of which are reserved exclusively for "investors" who are not considered "dealers".  

If you do have a separate account for the resident, modify the lease to require them to pay you back 100% (it must be exclusively for the use of the resident).  

s point, we use QuickBooks Online exclusively for all of our REI Clients but I've heard great things about Xero.

They assert the presence of an "exclusive platform of top-notch local vendors that collaborate with their designers."

With a co-op you don't own the unit, you own shares in the corp that owns the building and all the units with the shares having an exclusive right to use a particular unit.