The main restriction on using the Section 121 exclusion is the ownership and use test.

After 2 years sell to use the sec121 exclusion for capital gains (doesn't help with depreciation unrecapture).Yes, DST and syndications have a long running thread right now about their risks. 

It's a nice benefit while you live there, but it shouldn't be the deciding factor in what you do next...it can play a part in the discussion, but the much greater benefit is your ability to sell tax free on your personal residence with a 121 exclusion. 

What has specific exclusions or limitations? 

The floor area of the main structure, exclusive of porches and garages shall be no less than 1500 sq ft of livable space." 3) not too serious about the livestock/poultry 4) It only does but legally.

We all have our margins, our exclusive costs and our profit/overhead.

what's the fine print and exclusions?

Assuming 25% of your property is used exclusively for the STR activity for a full year, you'd be able to utilize bonus depreciation for 21.25% of the original installation amount (subject to recapture).

The limit is applicable so it doesn't count toward the doner's lifetime gift-tax exclusion.In theory, if the doner doesn't anticipate to have an estate near the lifetime exclusion, they can gift more, they would just need to file a gift tax return, where normally no tax would be paid.

Your rental income and expenses would end up on your personal return and could net to zero, but not be deductible (unless you have real estate professional status).Bill does have a good idea about living in a residence for two years, fixing it up, and selling it with the exclusion (up to 500k for a married couple), if that was something you wanted to do.