Quote from @Adam Macias: Let's just start a simple discussion so other members can see this for future reference.As a real estate agent, no matter how obvious the answer may be or not be...Why is an exclusive buyer's agency contract so important to you?

Current Setup (Owner-Occupied + Rooms Rented)The house is their primary residence → they keep the Section 121 exclusion if they sell (up to $250K each, $500K if married) as long as they’ve lived there 2 of the last 5 years.The rented bedrooms = rental portion → they can deduct:A share of mortgage interest & property taxesA share of utilities, insurance, repairsDepreciation on the rented portion of the homeThe share is usually based on square footage (e.g., if 2 of 5 bedrooms = 40%, then 40% of those expenses are rental deductions).2.

You’re right—there’s no $250k exclusion here, and any capital improvements can increase your basis if you keep records.

Also, I plan to do it exclusively in my area(Metro Detroit).

My team and I are now officially partnered with Home Depot ProXtra with an exclusive discount on-top of their existing ProXtra accounts to help further their ROI ($6,100 average savings --this is a huge game changer for our investor pool!)

It's buying your ability to hold the property giving you exclusive right to purchase (at your option) during the agreed upon option period. 

That way, if ever questioned, you can show legitimate investment intent.Once you move in and it’s your primary, you need to live there at least 2 out of the last 5 years before selling to qualify for the $250K (single) / $500K (married) capital gains exclusion.2.

@Rodria Mays - I got my license in between purchasing my first and second investment properties - and I did it at the time almost exclusively because I wanted to get paid as my own buyer's agent (also for education and greater access / tools). 

I use QBO exclusively for my real estate clients and my own portfolio because its integrations and features make it more efficient than other software.

One of the biggest tax advantages in real estate is the "Homeowners exclusion" If you live in a home for 2 out of the last 5 years, $250,000 in capital gains ($500k for married couples) is excluded from your income when you sell.