Many of my tenants have unpaid medical bills and other loans (credit card, car payment, etc.) with late payments which have been satisfied.  

I was thinking of buying everything under a LLC  since I don't want any possibility of a law suit from either my medical practice or from my real estate holdings to affect one another.

I am planning on attending medical school next fall, but would like to begin my real estate investing before I matriculate.

If I'm not mistaken, you can still take the exemption or a large portion of it if you lived there for 1.5 years and then transferred for work a certain distance.  

David, a license is required for any third party negotiation between a Borrower and a Mortgagee that results in any financial gain on behalf of the negotiator and if that same negotiator is not exempt from license such as a HUD housing counselor.  

But that's completely different from the average citizen trying to pull this off.The IRS can't tell where you sleep, until of course they audit you and turn your life upside down because you claimed an exemption on profits from a flip that you "intended" to live it.While a primary residence may "legally" be the place where you intend to return, that's not how the IRS defines it.

You have 1 exemption, then the rules change for 2-5, but if you'd done 5 you definitely need a RMLO to qualify your buyer. 

If you have lived in your primary residence and owned it for two out of the last 5 years before you sell then you can exempt the first 250K (500K if married) of profit tax free.  

Essentially, I could use the "Just Cause" exemption to evict a tenant, where I am the property owner, AND I live on the property, AND the property is 3 or 2 units, AND I do not claim a homeowner’s property tax exemption on any other real property in the State of California.I want to help other folks who are starting out, and in a similar position as me.

You might consider Niche or Specialized Housing like student housing, medical housing or tourists.