The chances of collecting in Texas are rare as we do not allow garnishment and the list of exempt property is long.

Once you turn that house into investment and are outside the exemption window but want to sell you can simply 1031 exchange it and buy another property or properties. 

Didn't the Tax Relief Program in 1997 exempt homeowners from paying taxes up to $500,000 profit for filing married.I am going to speak to a tax professional, but I thought I'd check here! 

There is no friends and family exemption to selling securities, and New York is highly regulated in that area of law.

UNLESSYou qualify for one of the IRS exemptions (the move from the home was related to a change in employment, health, rare unforeseen circumstances)If you qualified for an exemption- it would just be a prorated amount of gain exclusion 6 months would be a 25% exclusion 12 months would be a 50% exclusion

If you continue to live in it for two years (satisfying the Sec 121 requirement mentioned above) then you have the option of combining the Sec 121 exemption and the 1031 exchange when you sell it.

We're planning on keeping remaining 3 tenants on a month-to-month lease from that point forward, until we come to the right financial decision as to what to do next.We're now getting close to a crossroads with what to do with the property; we can increase rents year over year to get better cashflow (we're about $300 under market value right now), or we can sell the property if we find a home to can cashflow better (and potentially still have some cash in hand from the sale that can be used for other real estate deals).If we sell, we're aware of the capital gains exemption available on primary residences, where it states that the home must have been occupied as a primary residence for at least two of the previous 5 years.

Not sure what city this is in, but taxes would be around $525 per month with a homestead exemption or $675 without.

It seems to be high...2% without the homestead exemption.   

Plus if she has lived their for more than two years (which it sounds like she has), then she also would have 100% tax exemption on gains.