@Mike Flora, sorry this got lost in the shuffle till @Dave Toelkes kind shout out.First issue - You have to  purchase at least as much as you sell if you want to avoid all tax.

I'd need to know more about how old the building is, what neighborhood it's in, etc, to give you a precise picture, but here are some issues.1) You don't include any cost for utilities.

I have a tenant up stairs who is happy that I’m intative to any issues that comes up like her water tank that kicked the bucket she only had to wait 24hrs before it was up and running.

I'm just in Asheville for the VA right now because I have multiple issues from Iraq, including a brain injury which currently prevents me from driving. 

I had a similar issue when I bought my first property so I went the turnkey route and got my first property for about 20k all in, including closing costs.Then I decided I wanted to buy something with a bit more built in equity, so I bought my second one in a different city and state.

This scenario played out with a lot of my family who moved to Florida and wanted to come back because of the fear of future weather disasters and other issues.

If they can't pay their deposit and the first months rent upfront their will be issues throughout their tenancy coming up with the rent.

Is there a way around this issue?

To add to the issue, Goldman Sachs bought up most of the Fannie May auction pools last quarter which added to a drop in inventory and increase in pricing for remaining, available assets. 

I don’t know the exemption clause you are referring to, and likely no one else here does either, but generally.......cities/towns have nothing to do with real estate licensing, that is a state real estate commission issue.