But, if the seller was single and only $250k exclusion, the rest is taxed at 15% nominally.this would open up your pool to whom to wholesale...

@Taha TekreetiAnd just consider if you will ever use the sec121 exclusion to get the 250k to $500k exclusion to capital gains, if you lived there 2 out of the 5 past years when you sell. 

If cities really wanted to make housing more affordable, they'd override the very stubborn owner-occupants of Single-family homes, and change the reality that 75% of land in most American cities is zoned for single-family exclusively.

This is happening all over the midwest, not exclusive to Ohio. lol

Payments that you make normally fall into one of 3 buckets100% of the payment can be factored in somewhere on the returnPartial payment can be factored somewhere on the return0% of the payment can be factored in somewhere on the returnHouse-hacking also has considerable tax implications in the event that you want to sell this property.You can potentially defer a portion or all of the gain on the investment property with 1031 exclusion.You can potentially exclude a portion or all of the gain on the personal residence with section 121 exclusion.

Down payment and closing costs considered, I am looking to deploy $40k - $50k maximum as an initial investment.The potential exit strategies I see are:1) 1-5 year exit: after living in the property for 2 of 5 years, sell to capitalize on capital gains tax exclusion on up to $250k. 

You might get increased views and a nice listing page but the requirements to join plus have changed where they may only allow you to list exclusively with Airbnb and there is a higher % fee you pay to Airbnb (I think like 8% if I remember).

In the end we decided it didn’t make sense to do as they take a lot more money and you have to be exclusive and can’t rent it out on other platforms or directly.

Very interesting situation as it related to the Section 121 exclusion.

I was discussing a scenario with my RE partner where a property could be considered a Primary Residence AND an Investment Property, which could potentially give the choice of either doing a 1031 exchange OR receiving the Section 121 Exclusion assuming a sale in year 4. 1031 Exchange - has to be an "income producing property" and CANNOT be your primary residence to defer capital gains tax.