If you plan on being a very active investor, it's possible but you will need to keep the velocity of your money up high.

(I've not done another capital gains exclusion ever.)Or would the sale be considered to have already happened 3.5 years ago, the owner-financing be considered a loan, and only the interest on the loaned-out money be taxable?

Just curious.If you are going to pay a PM, just be aware that you might not make any money on it.I just use a spreadsheet.

I am on my first BRRRR and the issue is lenders keep only wanting to lend on 80% of the purchase price and not the actual appraised value, which would keep my money tied up on the rehab portion as well as 20% of the purchase price.

Originally posted by @Max Gradowitz:I'm in CA and the most common LLC-related question I get is "I live in CA, I want to buy properties in other states, what state should I open an LLC in so I can save money?"

Buy it as an owner occupant and you'll need less money down. 3.5% vs 25%.

Is it making you money?

I hope you get your money back soon.

If you’re handy which it sounds like you are, and are able to source and negotiate good deals  (which by being a long time local with an existing social network makes that part easier) then these skills will help you save money on rehab costs and by buying right (critical).

Quote from @Enzo Moraes-Chagas: #1: don't spend all your money on a property.