Take advantage of the free education and dont be afraid to challenge or ask questions.

The challenge is that your capital gain significantly exceeds the $250,000.00 (or $500,000.00) tax-free exclusion permitted under the 121 exclusion, and if you sell your property the amount of capital gain that exceeds the 121 exclusion limitation would be painfully taxable.

I'm satisfied with that.I'll let you know if anything changes.

I'd love to hear the challenges you face selecting tenants.

We, together, are learning, making money, and building a great network of workers to get us through the present and help us build the future.Bottom-line: I think you need “pleasant nightmares” to grow, expand, challenge yourself, and ultimately create what you envision.

Are you satisfying all elements of AP in your state?

Therein lies one of my challenges.  

As far as I know, no, you don't have to refi the first one to buy the second, so long as you have lived in the first long enough to satisfy the seasoning requirements to have called it your primary residence as an O/O.Once you have been there for a while, call up your lender and tell him/her that you want to buy a new place and you plan on living there for a while.  

When I put these together my biggest challenge is the lack of bookkeeping.

The first 250K (500K if married) in profit is tax free anyway under IRS sec 121.If it is investment property then any indebtedness tied to the property must be satisfied in a sale anyway so in theory the answer is yes but here are some things to think about.1.