This is two different things.

I have a followup question - I will realize a lot of capital gain from this home in Idaho, so I think unless I purchase a new primary residence I will have to pay that capital gains tax. 

They are asking for 28% capital call proportional to investment amount. primary purpose of capital call to survive high interest rates for next 1 year and hoping interest rates gets favorable by then.

This would let you rent out the house for the next 3 years if you wanted and still get to take the gain.  

There really isn't a safe, secure way for someone to protect their interests.

Gifting equity in a house may be more trouble than it is worth if you are not near the life-time exclusion1) Potentially having to get the property appraised everytime an equity is gifted2) Having a title company update the title every time3) Exemption of the gift tax return is normally for cash gifts below the annual gift tax exclusion, you may still need to file if you gift non-cash4) If there is partial ownership over several years, having to properly pro-rate certain items such as real estate taxes, mortgage interest and rental income if the property is a rentalBest of luck 

Purchase price: $260,000 Cash invested: $120,000 Sale price: $535,000 Complete gut, new front and rear walls, all new electric, HVAC, plumbing, roof, deck, windows, interior What made you interested in investing in this type of deal?

Once the home is a rental, you can deduct operating expenses like property taxes, mortgage interest, insurance, and depreciation (over 27.5 years for long-term rentals).

(This may have changed in subsequent funds, so check with PPR.) 

Purchase price: $72,000 Cash invested: $107,600Case Study: Cockroaches to Cash FlowProperty AcquisitionI found this property through MLS.