The 2016 sale will never qualify for the full exclusion. The only way it would qualify for "any" exclusion percentage, would be if you sold it because you moved under military PCS orders, or moved as a condition of employment or continued employment. From reading the original post, this "sounds" like a planned event with the intent to make money while reducing the taxes on that money. WHile money was made on the sale, taxes were not reduced. It's called the "school of hard knocks" and we've all attended it - and have been enrolled multiple times even. At least next time, you'll know.
