This involves working backward from the final aim to determine the steps.

However, this has to be the primary residence of everyone on title in order to qualify and even if that were all true, we're still only up to $1M that way.I agree with the other commenters, the parents should continue to own it and live in it as their primary, leave it to the daughter when they pass, and she inherits it at the stepped up cost basis. 

@Brandon TylerThat’s an exciting step—getting your real estate license will open up so many opportunities to learn and grow!

I think what @Garrett Brown is getting at is using this in addition to other methods.

@Henry Clark in step 1, what is the numerator of the ratio?

Quote from @Carini Rochester: Since you inherited the house, you get the stepped up basis.

Local Investment StrategiesHouse Hacking: Given the affordable entry prices, Albuquerque can be a great place to start house hacking, especially near the university areas.BRRRR: For those familiar with the Buy, Rehab, Rent, Refinance, Repeat method, there are opportunities in Albuquerque to purchase under-valued properties, especially in areas undergoing gentrification.Airbnb/Short Term Rentals: As previously mentioned, the city's rich cultural appeal can make certain properties lucrative for short-term rentals.

I am currently working on my first BRRRR and while walking through the rehab I accidentally stepped in paint then onto my hard wood floors. 

I started by building a 12-door portfolio using the BRRRR method and self-managing initially.

Then they lowered the price to $340,000, a step in the right direction, but not as big a step that I liked.