They basically turned a SFH into a duplex.

Between my experience remodeling and building houses and what I’ve learned about flipping houses, I feel like I have a grasp on the basic concepts.

@Caleb Heimsoth So basically I want to only look at 100% equity leads?

My original question was basically how to do it without being raped on taxes.

I have done some research and I have some basic understandings and questions1) Looks like I need to know a "conversion to rental date"  Is this just any date I want to pick after the 2nd house closes? 

Without a goal you are basically pulling tools out of the toolbox without a gameplan. 

When you're engaged in a wholesale transaction, you'll probably need to include somewhere in your contract that you are a licensed salesperson but are not representing the seller in anyway and that you are a principle in the transaction. 

I'm not a CPA so you should consult with yours, but these are the basics for your situation.Capital gains exemption on personal residence - This is the 2 years out of 5 rule, if you've lived in a home as your primary residence for 2 out of the last 5 years you get a capital gains exemption of $500k since you're married (it'd be $250k if you were single) Meaning the home can appreciate $500k or less and you'll pay no capital gains as long as you meet this 2 out of 5 requirement.

Basically I want to be 100% clear and free of this property and not have to deal with it ever again.  

Many won't even include basics like CapEx and maintenance saying stuff like - our properties are fully rehabbed even though appliances/roofs/HVAC don't last forever... in the projections and they like to cherry pick rent projections that are the highest possible in the area.A common scam is filling a rental with unqualified tenants who default and need to be evicted.