I have a completely separate entity that my wife and I own for our "passive" investments. 

Facts to consider: The condo is in my husbands name, has been for about 5 years so the capital gains taxes would be ours to pay upon sale.

---They can defer capital gains and still have cashflow with no headaches.Try negotiating 5%/$12k down so you still have funds for deferred maintenance.After 3-5 years, you can refinance to pay seller off.CHALLENGE: you better check everything out financially and with the properties (well inspections, etc.) to make sure seller is not dumping their problems on you.

@Mike Most The Great job on building your equity base and how smart you are to be looking to othe markets, I work with out of state/country investors and help them create passive income with midwest rentals and here's a few things to consider:- Competition is everywhere and only growing in any worthwhile area, so instead of looking for places with less of it I'd focus on building the team that can still deliver results. - The time is always NOW, so many people stayed out of the "fight" over the last few years and now with rate hikes they are kicking themselves because they missed out.

I am military, and from what I’ve read there is an exclusion of capital gains taxes out to 15 yrs vs the normal 5 for military members.However, I only lived at the property for 18 months, not the 2 years required. 

Hey your messege is a bit confusing -  seeYou can avoid capital gains tax when you sell your primary residence by buying another house and using the 121 home sale exclusion.

Higher cost markets produce more equity gain for the value add.

The mortgage remains in the seller’s name, but the buyer gains ownership of the property and makes the payments.Risk: This can trigger the Due on Sale Clause, so it’s essential to understand the risks and have a plan in place if the lender calls the loan due.Wraparound Mortgage (All-Inclusive Trust Deed - AITD):Definition: A wraparound mortgage involves creating a new mortgage that "wraps around" the existing one.

That way you have a primary residence plus rental income and gaining equity.

It is the only way to gain financial independence.I hope you read the sarcasm in that comment.I will assume you have more experience over time than just the 4 units you currently own.