If you have lived in the house for at least two of the prior five years, you can exclude the profit from Capital Gains tax under Section 121 of the Internal Revenue Code.If your tax return filing status is "single," you can exclude up to $250,000 of capital gains.If your tax return filing status is "married (or whatever) filing jointly," you can exclude up to $500,000 of capital gains.There is no requirement for what the money is used for.  

Like many of the responses I would network prior to the purchase.After having some of the network I would house hack a duplex to quad with potential forced equity gain (i.e. not one that has already been rehabbed) using an FHA loan with as little down as I could. 

I'm going to be taking the state licensing exam in the next few weeks and am just looking for input.

You may have to season your property prior to the cash out.

I do not understand this statute and the timeline as it applies to my situation for the unsigned tenant..When the tenancy is from month to month, by giving not less than 15 days’ notice prior to the end of any monthly period; Jan 22nd= we are moving out march 15th EMAIL CHANGE OF PLANS Feb 21= notified we are moving FRIDAY the 24th,,, next email no now it is monday feb 27th.... we want our money back... is this considered a 7 day notice?  

I caught my break because of my prior experience in real estate as an agent, as a NASD Registered Representative  (predates FINRA) and insurance rep, anti-fraud background as a manager at UPS and a landscape contractor.  

People will argue that they are building equity and that tenants are paying that off for them but equity doesn't by you your ham sandwich for lunch (financial independence)....what it does is it ties you down into an investment that your kids might benefit from or that your nursing home will benefit from when you get old enough. ...and what do people do...they get tired of maintaining that house that's making them $90 a month and try to pull more money out of it by not keeping a reserve for repairs or capex and they let it go the way of neglect....which reduces it's value....which means it loses the very same equity they argued about 15-30 years prior.  

not sure where you are buying but for houston, your numbers seem a little high. are you rehabbing the house prior to renting?

My background is in examining financial institutions – I’ve worked for FDIC and NCUA so I’m familiar with community banks and credit unions.

It isn't anything major that would need to be done prior to us moving in but we want to paint and have it cleaned really well before we move out stuff in.