My main goals with these initial projects are:1.Gaining valuable insights into the local market.2.Getting hands-on experience with out-of-state investing, particularly when it comes to remodels and managing from afar.3.Testing the entire BRRRR process to see if it’s the right strategy for me long-term.If all goes well, I’d love to scale up and explore multi-family projects.

We kept and rented our primary residence for three years before selling it (and we didn't have to pay capital gains taxes).Thanks!

Your problem will be them incurring capital gains taxes simply so you can get a commission.

I’m here to connect with like-minded individuals, gain insights from others, and contribute value wherever I can in the real estate field.

Figure out the state and federal capital gains tax and depreciation recapture after selling costs.

Just trying to gain a sense of hot or cold. 

However, after accounting for long-term capital gains tax and other expenses, you would be left with $150k which is important to budget and account for.

They get a higher return since they are covering housing cost, have the $250k per spouse primary residence deduction in gains, is a savings account, higher leverage position, lower interest rate possible, will pay more premium for location, etc.House might be overpriced for REITs but not for home owners.  

Your sibling can use a 1031 exchange to defer capital gains taxes on the sale of the rental properties by reinvesting the proceeds into like-kind investment properties.

My name is William Taylor, I am extremely excited to be a Pro Member in the BiggerPockets community and ready to gain immense knowledge from all of the contributors.