I don't believe you could benefit from the capital gains exclusion.I'm also not sure this arrangement even provides you any real asset protection. 

Would be happy to provide any additional information as needed.

I would suggest after reading into all the information provided by LO's above, which I wont reiterate, to find a referral from other RE investors in your area for private money.

It sounds like you have a solid plan in place, and I'll provide some insights and advice based on your questions:Maximizing Investment Longevity:It's a smart move that you're house hacking with an FHA 203K loan, remodeling for appreciation, and then refinancing to extract equity for other investments.

And has repairs listed at 16k-20k but from looking at the pictures provided I know it’s incorrect.

You can find a house today that will provide you a place to live.

For example if you are putting in 10 washing machines you will need more hot water capacity then a residential hot water heater provides. 4.

Happy to provide some resources if you need. 

My “clients-first” approach means that you’ll be working with a professional who listens to you, provides expert advice, and works hard on your behalf.

Side note, if you will be financing a condo that allows short term rentals, you will most likely need to obtain non-warrantable condo financing, not conventional.