Capital gains are calculated as:Sale Price - (Original Purchase Price + Capital Improvements + Selling Costs) - depreciation (if applicable) = Capital GainYour mortgage or HELOC balance does not affect this calculation—it only determines how much cash you take home after the sale.In Massachusetts, if the home was your primary residence for at least 2 out of the last 5 years, you may qualify for the Section 121 Exclusion, allowing you to exclude up to $250,000 (single) or $500,000 (married filing jointly) of the gain from federal capital gains tax.

I agree with what Rick stated but believe he intended this for a single ADU in a single family zoned area.  

We have couple turnkeys, and couple of BRRRs that we did so far (all are single family residential properties with long-term tenants).We are interested in exploring commercial real estate, and wanted to get all of your help in getting started. 

He wanted it all sold as a single package with no owner financing.  

It’s a small single-family home in Florida that I plan to BRRRR.

Consider starting small by house hacking a single-family home, renting out rooms, or adding an ADU if possible.

After years of self-managing our single-family rentals, we decided to hire a property manager to provide full service management.

I currently work with investors looking to build their portfolio with single-family, long-term rentals while managing for them on the back end, making is hands-free for the investor to still work their W-2 job and live their everyday lives and spend it with family, hobbies, etc. 

Something more passive via a syndication could work for them, and otherwise they'd probably prefer something simple like a long term single family rental. 

You magically get the seller to cover every single closing cost (A $12k gift, or a trick to get you to buy their problem.).