I went and checked out one of their houses recently for a flip.

I decided not to go that route and start looking for a good PM in Kansas City to buy some cash flow houses through and manage.

And your money is Trapped inside your house. 

The housing crisis saw record numbers of foreclosures of single-family homes in Maricopa County in 2010.

They are investing in infrastructure, housing, public safety and taking the steps they need to take to attract more jobs. 

VA loans can be assumed by anyone (investor, veteran who doesn't want to use their entitlement, and non-veteran) so long as the seller is willing to leave the portion of their entitlement that they used with the house.

I still have one house with some existing K&T.

Out-of-state investors love it out here because of the low barrier to entry, high rental demand (your house is not going to sit vacant), and lots of growth potential in areas that are going through revitalization, among other things.

Buying a new primary residence has nothing to do with the capital gains exclusion.It is when you go to sell the new house down the line you'll run into a problem.

I first started out in Real Estate by house hacking in college.