Would the federal tax liability be $140k at year 5 for the sale, with long term capital gains (ignoring any Net Investment Income Tax)?

We would greatly appreciate your guidance regarding any requirements, limitations, or recommended procedures in this context.

Limiting those expenses is a significant part of landlording!

If the bank is imposing some limitation on the buyer (e.g., it cannot be the borrower), then what you're trying to do may be to circumvent some limitation.

If you don't want the headache of management that is fine but will limit your options. 

Airbnb offers $3M damage protection insurance (AirCover) if guests don't pay for the damages they cause, and $1M liability insurance if a guest gets hurt or their belongings are stolen.That being said, I too do not allow instant booking or most last-minute long-term bookings out of nowhere.

I don't buy from assignors for two main reasons...liability and fictitious numbers. 

You don't want too many properties in any one LLC for liability purposes. 

@Otis Clayton To partner in real estate effectively, establish a clear structure like an LLC for liability protection or a Joint Venture for single projects.

I need help finding statistics of appreciation, population growth, job growth.California of course has great appreciation and limited competition growth with high house prices making renting almost a necessity but I worry with more people leaving California then coming in this year that Phoenix might be a better investment in terms of long term growth.