Based on only the facts and circumstances listed above and if it meets the 2 out of 5 year test, it will be considered under the $250,000 income threshold and non-taxable.

You should always check the numbers yourself before you sign to move forward with a property, but having someone to feed you different options lets you focus more on the work being done.

In escrow, 2 extensions done and expiring soon and my loan just getting it done but its not coming together now the total isnt quite enough. lf l walk l lose deposit $7500. l dont want to walk.What are my options?

Based on your description of the property, it seems such a steal at that price.

Given these factors, I am considering a few options:1.

I will also be creating a property management company (based in NJ as well) to manage the LLC's property.  

I’m an investor based out of Columbus, OH.

A good custodian will be there to support you and provide education every step of the way; you may find you don't even really have the need for checkbook control (also a good option to ensure you're being extra careful following prohibited transaction rules).

Condos are another option in that price range but with condo fees can kill your cash flow. 

(Selling to the life tenant is not an option.)