The relationships you build can help you in unexpected ways, whether it’s finding out-of-state contacts or gaining insights from others with remote investing experience.

However, if you decide to sell after holding the property for over a year, you could qualify for long-term capital gains tax, which is lower than ordinary income tax.

You'll be able to garnish wages up to a certain point, hopefully they are gainfully employed in a stable area that would allow you to do this. 

Some partners will be more passive and then grow to enjoy it.

My question is, do I qualify as having lived in the house for this time, to get around the 2 out of 5 years capital gains tax rule?

First, how does everyone handle the capital gains on a rehab project?

People that join for a quick gain and leave a wake of problems behind them, but these are rare and he just recently announced a clever way he’ll be dealing with that too.

My goal will be to create more passive income - I don't want to manage properties.My thinking is to first try and do a SFH BRRR locally (in state) for cash flow and learn the ropes some.

Don’t forget the extra space in the living area gained by moving everything to the garage, make sure this looks good and maybe take advantage by adding a sleeper couch if you don’t have one already. 

This is one of the most passive types of investing, but still gives you control of the property and investment.