Simply gifting him half the property now wouldn’t immediately allow him to claim the exclusion without fulfilling this residency requirement, I don't believe.One thought would be to use a HELOC to pull just enough equity out of the current home and use it to buy a smaller home, or at least the down payment.

Or buying opportunities if the bottom is reached soon.

Please feel free to reach out to me and my team if you would like to come up with a game plan and build your buy box. 

Check fees are $10**** When buying physical real estate, you must have a 10% cushion of the purchase price**We waive the first 6 transaction review fees for the life of the account.*** The first 12 incoming checks are free each year.

I’m from Houston and particularly interested in the Houston market and its surrounding areas so it is easier to manage.My Criteria:* To buy: 3bd/3ba property at Max: $350K.

so: buy a house. 

Investment Info:Townhouse buy & hold investment.

The ability to see the major issues before you buy is key especially when buying dilapidated early 1900's homes.

Last thing to consider is if you are buying a new home, will you want to do 100% financing and will you have the remaining bonus entitlement to do so.

---You can try to increase your chances of cashflow by buying a beatup property and BRRRing it.2) Buy Class C cautiously.