It says that if you live in your Home for 2 out of 5 years that you can Sell it for up to $250,000 Tax-free.

On flips, we don't find pushing that envelope worth the added liability if someone finds out that it's not a legal bedroom.

I’m also fine with breaking even as the STR is more of a tax play for me.

You need to get your own insurance quote, understand what YOUR tax bill will be (will the assessor revalue the property to purchase price right away?)

If so, then it should be a tax free sale.

But be sure to ask your accountant even if it’s just the local H&R Block guy because it’s probably all a tax write off.

Any tax experts know if this is true or not? 

Do you do taxes for CA?

I invest and help others invest in Cedar Rapids, Iowa and know a couple neighborhoods where the tax assessed value is lower than other neighborhoods (same house), but just have a poor stigma/border thriving neighborhoods, so the spill over is and will continue to push into these neighborhoods.#4 You can take this questions 2 ways. 

Is the $775K inclusive of the closing costs, transfer tax, land, architectural drawings, engineering drawings, township approvals, legal fees, holding costs (during construction), realtor fees?