Elimination of Broker fees

[Infinity Commercial Group]

If you sell a house which has been a personal residence in 2 out of the previous 5 years and is also used as rental property at the time of sale, you may be eligible to exclude up to $250,000 (up to $500,000 per married couple), and may also be eligible to defer any excess gain using a like-kind exchange under Internal Revenue Code Section 1031.

As Ken mentioned, talk to an attorney, or accountant on the specifics.

Do you have anymore info?

[jmlrealty]

If you sell a house which has been a personal residence in 2 out of the previous 5 years and is also used as rental property at the time of sale, you may be eligible to exclude up to $250,000 (up to $500,000 per married couple), and may also be eligible to defer any excess gain using a like-kind exchange under Internal Revenue Code Section 1031.

As Ken mentioned, talk to an attorney, or accountant on the specifics.

The first part, regarding capital gains is true. The second part about it being eligible for a 1031 exchange is wrong. Personal residences are SPECIFICALLY restricted from the list of properties you can exchange. Now, if you were a bit clever you could do the following:
1). Start up your own real estate investment company. Now you have a business entity that receives all the privileges of a business, tax deductions, etc.
2). Find a renter for your existing home and sign them to a lease if you can. Helpful but not always needed.
2). This lease (if you have it) and your existing capital will help you qualify for your next home. Purchase it, and keep the first home.
3). If you do rent it, then enjoy the rental income for the duration of the lease. If you do not, then contact a qualified 1031 exchange intermediary and start looking for properties you wish to exchange your old residence for.
4). Once you are ready to do the exchange the following rules apply: within 45 days of close of your existing property you must identify up to 3 properties you will exchange for, at up to 75% LTV based on the proceeds of your first sale. This means if you sell your first house for $100K you can purchase up to $300K in property during the exchange. You have 180 days to close on the exchange side of the deal and purchase your 1-3 new properties.
5). When you do sell your first home, the proceeds do not go to you, they go to the intermediary (basically an escrow agent) who holds them until the deal is done. When you purchase the next 3, the intermediary disburses your proceeds, along with your new financing to whoever you're buying your next parcels from.
6). You must then hold your new parcels as if you intend to retain them for investment, rather just flipping. How this definition is interpreted varies with the guru you put your faith in. 1 year and 1 day is the minimum that most risk takers like. 2 years is a bit safer.
7). In 2 years, do it all over again. You still live in your house, your real estate empire continues to grow and soon enough, you're buying Trump Towers.

Disclaimer: See your attorney, accountant, personal psychic, animal psychologist AND mother-in-law for the remaining pertinent details and specifics. This is only a broad guideline, there are other provisions of 1031, read them all first. Good luck

[HouseboyMike]

Look at 80-20 loans, if you need 100% financing. Most good mortgage brokers have lenders that'll do the 80% 1st with no penalty knowing that there will be a 20% 2nd. Close on or near the 1st, since (surprise, folks) many lenders will only fund a 2nd mortgage on the 1st of the month. Libors are very flexible.

[midwestlo]

There are 103% and 107% loans available if the seller will not agree to pay closing costs. Usually having the seller pay closing costs allows for a superior loan product.

[AaronSOLD]

Superior = much better interest rate and/or fees.

Another option is to look at affordability "grants" that certain cities, counties or organizations provide to people purchasing in a certain area, a certain career (police, fire, teacher) or with a certain income. They can in many cases gift you money to pay your closing costs.