Leveraging the 5% down conventional loan is a brilliant way to minimize upfront costs while still gaining a foothold in appreciating markets like Gilbert, AZ.

Nickerson added “exchanging” real estate to upgrade to larger holdings without paying capital gains tax to his formula, and a number of other books were written about the subject in the next 10 years.  

Real estate is more passive while business is often active income until you get people in place.

Is this possible to delay or nix capital gains? 

After five years you'll have earned $90,000 in rent income and gained $34,000 in appreciation.Buy four houses with $50,000 down on each.

Out-of-state is more ideal once you have gained experience.

You likely still would owe capital gains tax on these. 

@JD Martin Passive investors don t want to manage hospitality properties.

I can only assume that our insurance company would not want to cover damages and such should something happen a house with tenants and a primary residence policy in place. but I haven't really gotten far into the weeds on the particulars of that. if you have gained any insight to that I would greatly appreciate the knowledge.

I told my tax accountant that it should be considered as passive income to offset the passive loss from my rental property.