It was thru a newspaper ad.

Was advertised in newspaper.

Shortly thereafter he sends me an exclusivity contract.  

The LLC will focus exclusively on residential multi-family properties.

I have lived in the main house for well over two of the last five years, so that definitely qualifies for the primary residence capital gains tax exclusion.

One thing you'll want to check is if you're planning on selling within 5 years and want to use the the Home Sale Tax Exclusion - I'm not sure if it applies to commercial property.

Here is a good summary of the requirements and exclusions from our State (Florida) contract seller financing rider:(This is not legal advice.

One wrinkle is that I am investing exclusively in out of state properties, so that adds a little complication to the situation.

Really, David, should add maintenance issues/wear and tear/inherent vice to the list of exclusions on all policies as insurance is not a warranty. 

HelloI've  lived in my house 2 out of 5 years but want to sell the garage/lot  to my neighbor and the house to another seller.Do I have to pay capital gains tax on one of the transactions or would they both fall under the primary residence exclusion?