I know you are not taxed on the gain that occurred when it was a personal residence, but I didn't think you could escape taxes from when it was an investment property.

For larger apartments, years 2-3 are where this occurs if at all.

Situations like this have been occurring a lot recently in a lot of different markets across the country.

The conversion is not a taxable event. 

But I budgeted for $9k as a splurge, but even in the event I need to splurge a little more the numbers still work, right? 

Then we have over half of November and December booked with the longest booking occurring right around the holidays.

We have one long term tenant who has had a LOT of different people live with her, it is easier to make the revolving roommates authorized occupants.This is the clause we use to designate the primary tenant and give us more flexibility:In the event that Tenants decide they no longer want to live together, ___________ will be considered the primary Tenant to make decisions about modifying or terminating tenancy.

Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

Nearly every time Ive been involved in hearing a case where we have issued fines regarding letters/pictures or the such, the person we fined openly admitted to the violation without realizing it was in fact a violation, and usually continued to believe even afterwards they were in the right.A Federal Court upheld a finding by the Massachusetts Court of Appeals in the Linder V Boston Fair Housing Commission, that "Discrimination need not have actually occurred, or even been intended for a Fair Housing violation to have occurred." 

The partner who sells or exchanges his/her interest will have some taxable event.