The rule technically is "2 out of the last 5 years," so in theory you could live in it for 2 years, rent it out for another 2.5 years, and then when you sell you would still be covered under this same exception.I am very passionate about real estate and would be happy to answer any other questions you might have.

The Phoenix rental market is tight, we have zero vacancies of properties we manage and have been able to raise rents almost across the board the last few years.Why do you think it's taking time to rent your units?

@Gerald J Flattmann III Hello, I service the San Tan Valley and Apache Junction area for investors and provide Property Management in the same.20 years in Arizona, all residential in the SE Valley with the last 6 as Property Management.I manage everything from single family to 12 plex at this time.

The bank reneged on funding the last part of the loan which would have funded completion of our septic system/grease trap installation thus allowing us to open our on site bar/restaurant & expand the RV park. 

This is just one of the many reason property managers are great to have for your investments, I'm one so a little bias on this last part.  

Lastly how does this change impact your investors?

I am getting only 1.5% returns without taking into account the equity building portion.Mortgage tax write off is 0 as I currently pay mortgage on my primary residence.I have used this property as my primary home for 2 years in last 5 years.

Second, if you are a sub-to buyer, the last thing you want to do is to bring attention to the arrangement.

LVP/hard surfaces last a lot longer and look better.

Hi all,I feel like maybe I’m over thinking this….Last year my wife and I bought a townhouse as an investment to rent out to tenants.