Your parents have been living there but in order to qualify for sec 121 it must be your primary residence so screw the 121 it won't qualify and you'll end up really screwed :)  There is a safe harbor in Rev Proc 2008-16 that establishes 2 years as adequate. 

The purchase of a primary residence is the easiest (less hurdles, best rates, lowest down payments) and makes the most sense in many cases. 

Second you've probably changed your drivers licenses, voters registrations, homestead, buying patterns, and tax returns to all reflect your new primary residence and the fact that this is a rental.  

traditional buyers?

(Other option I'm wondering is I just moved out of what was my primary residence for the past 11 years and will be buying a new house. 

I have limited income on the books, so I don't think a traditional mortgage will work. 

*First Post*I just put an offer down on my first primary residence home using the VA loan.

Be aware there may be changes coming up to the taxation of primary residence sales, make sure to talk to a CPA specializing in real estate when you sell your home.

I work with mostly primary residences for buyers, yet here is my list:1) Befriend a contractor and take them with you to give to you a rough estimate for a) livability repairs, b) updating, or c) to make it really nice.

What will the numbers look like if you rented out your current primary, and kept the current mortgage?