What is your current financial capabilities? 

Do you understand that asset class and market?

It is definitely an amazing way to reach financial independence especially if you stay consistent with it!

Capital gains tax applies when you sell an asset for more than its adjusted basis, not when you borrow against it.

Thinking about doing the same (for my solo 401K) and considering Rocket dollar, equity trust, broad financial, etc.

This is a classic case of buying in an area you probably should not have and only appropriate for locals who will go to the property the moment tenant moves out remove all the mechanicals themselves and then re install upon tenant move inwhy anyone wants to own this type of asset is a mystery to me..

You’re on the right track—setting up separate LLCs for wholesaling and building can simplify things and offer liability protection, plus putting properties in their own LLCs keeps assets safer as you grow.

I watch a lot of David Greene's YT videos and have messaged him directly and he gave me solid advice - if I'm going to buy outside of California, to go for appreciation states and look at the asset. 

More cash flow and equity to the personal financial statement.

Read books like Set for Life by @Scott Trench and Start with Strategy by @Dave Meyer to get the mindset of starting on the table before going too deep into an asset class or something like flipping.