Hi for those of you that live in a multi unit (1-4 units)  I was wondering how you take the owner exempt cap gains writeoff ?

Multi-family is your best bet .The most difficult thing to do is to get off the sidelines.

I see multi unit sitting on the market that are hard to sell because they're occupied, and the mortgage price is too high for any cash flow.Given these obstacles, is it better to buy in Vallejo now, where there is no rent control currently (although that can always change)?

A multi family is best, but even a SFH will work if you can rent out the rooms. 

@Giovanni Luna personally I don't have experience with development.My firm belief though, if you have experience and a solid track record, finding money for projects is not the challenge, rather locating great opportunities for your investors.Your investors and lender will want to know about your experience and track record.

I have no doubt I can track someone down (or on here), but any advice would certainly shrink that timeline.  

As our portfolios grow and we hand off some of the management to a third party, it is easy to lose track of how individual properties are doing.

If it's single family, they won't just make it a multi even though there are multiple units.  

My wife works at home and makes minimal income through music tutoring (above $3K). 

It was easy to tell because I had so many multi-page letters from her with rants about everything under the sun.