It's $500k for a joint couple, $250k for single, on the gains.

With the cash flow play you need to buy low, negotiate hard on price, expect no appreciation and get a very healthy cash flow, nothing marginal,  And expect when you sell to make little to no appreciation, then any gains are icing on the cake.

@Rob Hakes Thanks for responding, passive, steady and boring is exactly what I am looking for.

If you think the culture in Atlanta GA in a class C or D neighborhood is the same as your culture in Boston in a Class B or A neighborhood you will find most likely that they do not match up.

I use mine to invest as an LP in syndications.Most of the time its used to invest passively invest though I did have a client do multiple rental arbitrages out of a SD IRA. 

It is also a low-risk way to learn all the principles of real estate investing with very limited risk, gain experience with evaluating, buying, repairing, renting and managing a property.

After you gain some experience you should start buying in a cheaper market, like Ohio.

It was well worth it since I had monetary gain, but I also learnt a lot from this project!!

Fix up the house and sell it and put the equity gains into a multifamily house.  

After living there 2 years, you can sell tax free on the gains.