Unless I'm mistaken...and I'm no CPA since it is your primary residence you would not pay taxes on the sale. 

I am buying a 1950s era small church with residence attached In Belvidere New Jersey, and it needs a lot of work.

Hi,I am a permanent resident of US planning to invest into 506C offerings.

Sec 121 is for your primary residence. 

I grew up in the Bellevue area and if you are willing to live right outside the city limits, there are other areas that can work well for both rental homes and or a primary residence.

I would be interested to see if there's room for added value in finding an underperforming turnkey asset, reducing expenses, pushing rents, improving move-out damage collection, and collecting on other expenses incurred by residents such as utilities, waste-removal, pest control, etc.

I currently own 5 properties as belowCurrent residence: Bought for $637K, downpayment made-126K, current mortgage balance - 500KInvestment Property1: Bought for 175K, downpayment made - 65K, current mortgage balance - 105K, net rental cash per month after PITI+HOA fee payment = $445Investment Property2: Bought for 209K, downpayment made - 72K, current mortgage balance - 124K, net rental cash per month after PITI+HOA fee payment = $436Investment Property3: Bought for 217K, downpayment made - 70K, current mortgage balance - 0, net rental cash per month after PITI+HOA fee payment = $1137Investment Property4: Bought for 455K, downpayment made - 90K, current mortgage balance - 253K, net rental cash per month after PITI+HOA fee payment = $287I also have investments in ETFs worth around 250K.

the home that i live in currently, sits on almost an acre. I am considering putting a tiny house rental on the lot.
thoughts?

I do not know where to get started at all. how to i even go about getting it approved?
...

@Scott LongVirginia will require you to report the rental income from the property in NY because as a Virginia resident, you are required to report world-wide incomeNew York will also require you to report the rental income because the rental property is located in NY.To avoid the "double-taxation", Virginia will provide you a credit for taxes paid(if any) to New York.You are able to withdraw money from the LLC to your personal account.

$400k from a Los Angeles resident's perspective is still "cheap" for a 3+2 SFR.