Convert the Property to a Primary Residence: If you live in the property for at least two of the five years before selling, you may qualify for the primary residence exclusion, which allows you to exclude up to $250,000 of capital gains ($500,000 for married couples) from taxation.4.

The most qualified applicant in my opinion is a family of three, whose credit and background checks are clear. 

Fix it properly, then rent it out to a highly qualified applicant. 

If it will qualify for conventional, you would be just below the 75% LTV threshold.

Qualifying for REPS then hinges on two questions:1.

Only do turnkey if you have your OWN well qualified inspector who can point out any hacks or deferred maintenance issues.Many turnkey providors are notorious for this.

If applicants can't qualify on their own, I don't rent to them.

The experience of the housing provider is going to be the real challenge to getting you a set of keys to move in with...they have to qualify, pass inspection, sign a bunch of paperwork, and finally lease up and send everything into LMH. 

HI Stephen,You can always open HELOC or line of credit from your primary house or non primary house, assuming you have sufficient equity and income to qualify.

To reduce your tax bill, consider qualifying for Real Estate Professional Status (REPS) by spending 750+ hours on real estate activities, which reclassifies losses as non-passive.