If an LLC owns the property, then there is no exemption on gain for the residence because that code section applies only to individuals.

Your experience managing in CA gives you an advantage because it's not a landlord lord friendly state and there is still good appreciation in CA. 

Based on these circumstances, and also just in general, I'm wondering how investor-friendly agents out there approach sellers that have a home that is too overpriced for a fix-and-flip situation? 

some people take into consideration things like landlord/tenant -friendly states, where they'd want their kids to inherit property, higher-appreciating states, crime rate, climate, MTR/STR potential... sooooo much to consider here! 

It's not quite California demand, as the area supports a much lower economic and demographic profile, however there is still a robust economy and community in most cities and with remote work, increasingly, young families and individuals moving to the coast for value, lifestyle and opportunity.

As an individual, it is hard to open an efficient, responsible, profitable out of state network because as an individual you do not provide that much value for an agent or a contractor to run around and cater to you.But when you are part of a group that closed on over 4 million in real estate in six months and brought in over one million in local rehab dollars and put 50+ people to work and paid the city inspection office for all the permits, inspections, and reports then people cater you to. 

I'm eager to connect with like-minded individuals and continue learning and growing in the real estate market.I am interested in buy and hold or fix & flip deals of SFH up to $250K all in.Looking forward to engaging and building connections with the community!

We're Ruth & Sam - aspiring real estate investors in the Bay Area, eager to learn from experienced individuals like yourselves.

@Kenneth Donaghy made some great points and there are countless individuals who waited for "a deal" and ended up not buying and being completed priced out of the market with simultaneous price and interest rate escalation. 

With everything getting more expensive, the cost to put together a fundraise will be $10-$20k and if you do not have friends and family you will spend another $10-$20k to market it.