@Matt J.As an out-of-state investor in San Diego, key tax and legal considerations include filing a California non-resident tax return for rental income or capital gains, managing double taxation with potential tax credits from your home state, and complying with withholding requirements on property sales.

Do you take out a second mortgage on an Airbnb that you never wish to sell that’s almost paid off  or do you take out 100 grand against your primary residence.  

My primary residence, single family home and a large 7 bedroom duplex 

MTRs do have higher turnover than a typical LTR (usually between 2-4 times a year), but since most MTR residents treat the space well and since there is less moving in and out of furniture, it is not uncommon for an MTR to actually have less wear and tear over the year than an LTR (and a lot less than an STR), Arbitrage for the MTR operator has its own sets of pros and cons, but I just wanted to address the question of why would a property owner ever want to allow an MTR in their unit. 

Investment Info:Single-family residence buy & hold investment in Nashville.

If family lives in the main home and friends stay for free in the garage, the property remains a primary residence, but there’s no rental income or tax benefits.

You could 1031 out of the property, purchase a new one or something you might like, "Live" there for two years and convert the property to a primary residence. 

Then I search the county records by their name to see if I can find their primary residence which is where you can send a letter.

Primary residence capital gain $250,000 exclusion.  

It currently seems I’m not going to be coming back to the states anytime soon (given the upcoming projects within the next 3-4 years) but would really appreciate any advice on investment rental property strategy as so to start building the foundation for generational wealth/passive income.We have saved a substantial amount of money  for which the original intent was to buy our future primary residence with all cash if/when we moved back to the states.However, that’s not what’s going to build generational wealth and would rather put that money into passive income investments hence, real estate rental properties.