Asking in the correct forum will get a better response.Read the RULES!

@Brett JurgensThe "2 out of the last 5-year rule" in real estate allows homeowners to exclude up to $250,000 ($500,000 for married couples) of capital gains from the sale of their primary residence if they lived in the home for at least two out of the five years before the sale.

What I've seen before is the only time rules are enforced are when neighbors get pissed (ie STR neighbors).I would side with caution on this, especially if it is a newer built community where the rules are fresh with people. 

Yes, because Private Money infers that you are in a negotiable deal where your project can be outside the box and you can negotiate unique terms with a private individual - that - or a big box lender with strict rules and guidelines. 

For STRs, material participation rules apply, and STR income is treated as non-passive, allowing losses to offset active income.This post does not create a CPA-Client relationship.

There is plenty of good turnkey properties on the MLS for sale that would cashflow using the 1% rule and you wont have to overpay for them on a "promise".

I'm also bringing another investor (Strong) who will take out a loan for the 250 Be careful of the various rules.  

Start by researching areas that fit your goals, understanding financing options like FHA loans, and using the 1% Rule to evaluate deals.

I generally rule out most single family homes as viable rentals, as prices are pretty high relative to rents, so aside from some downtown neighborhoods, typically you do not find large areas of single family rental neighborhoods (a median sale price on a 3 bed, 2 bath home so far this year in Dane County on MLS sales data is at $430k). 

I am going through the regulations and restrictions in that place (not a closed community but there are some rules).