Thank you all in advance to enlight me .This seems like a good solution but I don't know how many people are doing it.  

It has been a great rental, however, now the property needs to be modernized.

With that, once you move you can rent as is, or modernize the property and increase the value, getting higher rent.

I ended up remodeling the kitchen and removed a wall and put a beam in its place and modernized the whole house.

Southern Connecticut River Valley area, Vermont towns in and around Brattleboro, Bellows Falls, Springfield, Windsor, Ludlow and New Hampshire Towns of Keene, Walpole, Chesterfield, Claremont.Thinking about having a get together, once per month for a couple of hours to discuss, goals, challenges, solutions, frustrations, etc..Just trying to see if there is some level of interest right now. 

I have one 1900 house with 5 bedrooms and the best HVAC solution is 2 mini split systems and a furnace/central air system for the half of one floor with an accessible crawl space to add duct work. 

Until then, I'd like to pick up and learn what my options are here for a creative solution.

On the plus side, the QBI deduction in the recent tax bill will save you some coin.You should have SOME type of corporate veil (move it to a corporation) to protect your personal assets as well as create barriers between the properties where necessary, but the specific solution to your situation is a bit too vague for anything other than generalizations without more clarifying information, and your best and most specific advice will come from a local and trusted tax advisor and/or lawyer. 

It seems like he is not exempt from capital gains tax so trying to find what would be the best solution to this.My questions are:1.

You need to negotiate with them to find a solution.