In both cases, each year you will reduce the amount of the unpaid gain and pay taxes on the principal portion you received, and then pay tax on the interest earned.As far as the rents, once the rents are collected by the PM, you, as owner, have received the rents, whether they have been passed on to you or not.

The maximum gain that can be excluded is reduced by the percentage of your ownership that the property was in service for a non-qualfied use.

A lot of your statements on CA are false (I probably could have simply stated a lot of your statements are false), but your narrative may help keep some people away so I find it to assist my goal of reducing more people to the large Coastal CA cities. 

This will help increase profit and reduce cost.Where do you smart landlord usually shops (note, I use the term shop not buy)?

A trend recently is to offload water and sewer for the park directly to the tenants to reduce overhead for the park.

@Andrew Cox reduce vacancy & collection by leasing to organizations not individuals directly. 

@Dillon Dull , I agree with you, If you incur the unwanted expense to just reduce tax, that is straights stupid decision. 

It would also reduce my Loan to value on the 1st rental to 80% and eliminate my PMI on that one which would keep my mortgage payment about the same or maybe even a little less accounting for the higher interest rates now.

This legislation will reduce the interest rate from 12% to 8%.

For example if I can buy a 120,000 home for 60k, rehab for 15K and get it rented and it is cashflow neutral, that might be a really good investment property for me depending on my goals.Or if I can flip a property and make 50K and I use that 50K to reduce the lending on the above property so that it now cashflows, that is also a good idea.