That way, her limited funds can go toward her own living expenses. 

Talk to a CPA to see how each scenario plays out.A 401K continues to grow in value, but what do you live on? 

So - somewhere 2 hours away, or somewhere you like to vacation in, or where all your family lives, or where you plan to move someday.Too many people are trying to do exactly what you're doing - pick a market based on a formula - and they end up buying a random 'cheap' property thousands of miles away, turn it over to people they've never met or even spoken to, and then... lose money.  

Hi, we went live with our first STR (or any rental for that matter) around mid-November.  

I don't know your living situation but if your paying x,xxx for rent or a mortgage and instead by living in one side and renting out the other you will be paying y,yyy instead and y is less then x that's great, especially if you can rent out your primary residence and make income there too. 

Not only does it have excellent potential as a house hack, but it also offers significant upside for a live-in flip.

Your primary residence - if you've lived in it for 2 out of the 5 years prior to selling you'll get the $250K/$500K tax free iike @Clint Galliano said. 

We live in Kihei now since the Lahaina fire destroyed our home, office and an investment condo.

Quote from @Maurice Nkonsissie: HelloMy name is Maurice, I live in the greater DMV area.

Live off of equity as you sell or live off cashflow.