You just get the exemption.

You need to live in the property for 2 of the last 5 years of ownership to qualify for the tax exemption of $250k for single filer.

Last I read, it was proposed that the capital gains tax exemption requirements may change.

The "portal" cannot handle money, it needs to go through an escrow agent, directly to the issuer, and the portals need to take extra measures to prevent fraud (similar to 506c taking extra steps to confirm accreditation).Most existing "funding platform" is now running on 506c exemptions, maybe a few 504 or Reg A+.

(purchase tax exempt) so I attempted to purchase a furnace at cost at the local wholesale supply, but they would not even give me a price since I wasn't HVAC certified.

(In other words, exempt from the filing).

Under the Bush tax cuts, though, short sales were given an exemption.

@David Nielsen, I have had no problem getting 75% LTV on my delayed financing exemption cash out refinances.  

If I sold the investment property, I would be able to sell my current primary residence in two years and get the same tax free exemptions, even it has become a rental (so essentially repeat the process from above). 

Another red flag that I see once in a while is a borrower will record a bogus affidavit that says that they belong to a sovereign nation and are exempt from property seizure etc...these were being passed around by the foreclosure avoidance scammers and they are totally meaningless but give you an insight into the owner's frame of mind.