But once they give it to you, you inherit their cost basis and have a taxable gain.

Accurate records of all expenditures are essential to claim deductions and calculate the cost basis for future capital gains taxes, including depreciation recapture.This post does not create a CPA-Client relationship.

So I just wanted to present the raw facts, hear everyone's opinions, and obviously gain some knowledge and tips from investors! 

But when it's equity gains, no tax, only at time of sale and if you 1031 Uncle Sam let's you continue to use that tax-$ for investing purposes.

My goal is to gain a solid understanding of the process, master deal analysis, and ultimately close my first deal.Right now, I’m focused on learning the basics — from finding motivated sellers to building a strong network of cash buyers.

I backed up, regrouped and went smaller to gain more experience. 

If not, should I sell stock that I have that has capital gains that would be due on it and offset that?

I lost money (opportunity loss) but I gained a wealth of experience. 2.)

You’d also make all future capital gains at least partially taxable instead of tax exempt by converting your primary to a rental.

If your goal is cash flow, then your best bet may be to live in it for 2 years, and then take that tax free gain (250k single person, 500k married) and buy elsewhere.