The main role of CF should be to pay the REI back for their cost of the property...and the cost to the REI is exclusively found in the amount of cash the REI puts into the property. 

Then sell it just before he's ineligible for that capital gains exclusion.

(Equity)Together these components are mutually exclusive and collectively exhaustive for calculating profit.

Exclusively.

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@Cody SmithSection 121 of the IRS code allows for a capital gains exclusion of up to $250K if single, or $500K if married when selling a residence you've used as your principal residence for 2 of the last 5 years. 

At that time my intent was to sell and use the 121 exclusion and 1031 the gain into DST’s.  

Tenants want to extend lease next year.But Cap Gains Tax exclusion as primary residence would expire.

I am in the middle of selling a former primary residence that would cash flow as a rental, but I can do better than that in my larger multifamilies and take advantage of the capital gains tax exclusion for primary residences.

Would love to chat about Indy, our current fund is exclusively Indianapolis based and we really think its poised to continue the trajectory it has been on.