Cheaper, and so far so good.

- Total 6 yrs  i.e 4 yrs (75% was rental and 25% primary) + 2yrs (100% primary)- $300k capital gain / 6yrs is the net gain per yr - $200K for 4 rental yrs + $100k for 2 primary yrs- So $150k (75% of $200k) is taxable and the remaining $50K (i.e 25 % primary) + $100K (2 yrs 100% primary) i.e $150k in total will be tax-free? 

Or should I stay in Iowa and aim at buying cheaper cash-flowing properties?

What I do worry about are the growing pains as we transition from a full-blown capitalist society to whatever is next.Because before goods and services will be so abundant that they are free, they will first have to get gradually cheaper and that forces businesses to compete through more  automation and less human labor in an accelerating cycle.

That honestly doesn't sound too bad I'm sure maybe if you asked around you can find someone who can do it for slightly cheaper but if they have a good reputation and I would go for someone who would do a better job. 

It means cheaper living costs, getting to know how to be a landlord, and having tenants.

These suburbs are being developed rapidly and 4 plex's in those areas are much cheaper than if you were to look towards Central Austin.

However, that's cheaper than hard money and it got me in the game.

I deducted property-related expenses, such as mortgage interest, property taxes, and maintenance costs, from my taxable income.

The NC return is correct as is in my opinion.Remember that states often piggyback off Federal amounts, often AGI or taxable income (then make upward or downward adjustments for things like 179 or depletion).Since the passive loss did not enter the taxable income calculation at the Federal level, it won't flow to the state return when NC piggybacks.