@Bob Gruenig, what @Chris Tracy may be trying to point out is that if you are creating a LLC and bringing in other passive investors into that LLC, your LLC may be subject to securities law.The easier option would be to let each individual come into the syndication's LLC directly. 

I'm now taking out cash and funding the rest of the fix up, as well as going to gain significant cash flow.

When you donate appreciated securities that you have held for more than one year, you can avoid paying capital gains tax on the appreciation.

However, the quickest way to build up enough assets to be able to leave your job and live on the passive income is to continue to do exactly what your doing - concentrate on equity building, not income building - UNTIL you’re ready to leave your job.  

Rehabbed it and the equity gain after was significant.

If you turn it into a rental, think about the capital gains implications. 

My main concern is regarding cost-basis and future capital gains tax when I ultimately sale the property. 

I have only a few spare hours a week I would want to be a passive investor using property management companies.

Pick up a copy of the book Lend to Live: Earn Hassle-Free Passive Income in Real Estate with Private Money Lending.

The lease says that she must gain owners permission if the guest is to stay for longer than 30 days.