Difference between a primary residence and qualified residence is important because you do not get sec 121 exclusion of 500k when you sell the qualified residence. 

You don't need to sell now in order to take advantage of the personal residence exclusion. 

You will only have to recapture depreciation taken during the period it was a rental.If you qualify for that exclusion under sec 121 you need to run not walk to a realtor and get that thing gone.

What I'm hearing is that we're aiming for appreciation exclusively and I always hesitate to put all my eggs in that basket.Let's talk about this in a business sense.

I threw a newspaper route (actually 3 of them) for the local paper during the week.

From what I read in local newspaper the city wants to allow garage conversations and lower building requirements.

If anyone who has used the section 121 exclusion can help lay out how it Is actually applied and what steps I may need to take now in order for me to keep these great tax exclusion benefits in the future, that would be very helpful.

Also, if they want you to sign an exclusive agreement, don't. 

@Ken Domond For what it's worth I exclusively invest out of state. 

A newspaper ad was suggested any other suggestions.