@Brad McCance Thank your for your insight.

If less than 3 years have passed from that date you can sell that property and take the first $250K ($500K if married) of gain tax free.  

I want to do this so i can gain some experiences and make some money before moving to SFH and beyond.  

I have used a turnkey real estate company for the past four years will consistent returns in the 7% range and also invest in stocks.Fees for stocks and bonds are based on your total investment and range from 2.5-3.5% of the total investment and are paid regardless of a gain or loss. so if I have $60K to invest my fees will be $1500 at a minimum regardless if I make or loss money.Management Fees on my rentals are based only on the growth (rent).

Keep studying, learning, analyzing deals to gain knowledge.  

Per below, I still have over $50,000 languishing in these POL investments, each now a good few years old with no end in sight . . . 

Capital gain is a little more complicated, with a pro rata share of principle received being taxed.

If you (like me) are interested in gaining "Listing Site Independence" (or LSI) you might consider joining Matt Landau's "Inner Circle" group on his Vacation Rental Marketing blog.

The loan itself would be considered a "Jumbo" loan (meaning over $424k) which means Fannie Mae and Freddie Mac (conventional lenders) won't lend that high...so you cannot gain access to their renovation loan.  

NMD techniques will be the way I start and I hope you guys can provide me with insight and mistakes that were made and issues you've had so I won't make the same decisions..