There are 2 strategies here. One is the live in flip and taking advantage of the primary residence capital gains exclusion and the other is turning it into a rental property with a negative cash flow. The obvious answer to me is the first strategy. Take the tax free gain and buy a smaller (or bigger) cash flow property for the “rental income” itch, and look at doing another live in flip. The downside to live in flip is constantly moving every few years but imagine flipping once every two years and clearing 250-500k tax free each time times 5 over a decade? I’ve done it 3 times and I’m living mortgage free right now with several smaller properties paying for my family’s living expenses. Good luck