If no 1031 he would be on the hook for Recapture Tax on 50K, and Capital Gains on 100K, right?

If I wanted to buy and hold for passive income, how would I structure a deal with hard money lenders to do so?

I think every real estate investor wants to be a full time guy because this is very enjoyable, there are lot of pros to being full time, here are some of the cons you should address 1) Finding the deals - As long as you are a passive investor if the math works even a 100$ cash flow a month is okay on the side, you can buy your properties from MLS but when u are a full time investor you need a lot more cash flow and lot better deals.2) Sourcing Finance - Banks look for W2s when you ask for money, you should be lot more creative and risky as a full time professional to source funding.3) Market Cycle and Current Market - Markets will cycle and as much as I know most areas are turning into sellers market with low supplies, how do you tackle that?

I LOVE multifamily properties and can see myself as a very happy person living on passive income from 50+ rental units.

I've been on this real estate investor student path for a while now facing the first time investors obstacle course but stayed in line on what was reachable for me on my journey as a student gaining as much knowledge as could in the process in order to succeed.

Partnering can be a good way to get started, especially if it helps you gain the knowledge base you need.  

If you sell a property you bought as a primary residence and have lived in for 2 out of the previous 5 years you can sell it and take the 121 exemption gain tax free.   

In my area of expertise, I should have $15k monthly passive incone within the next 2-3 years.

I would love to talk further and gain from your experience.Just wanted to say thank you for all the great advice.

You may also consider a more passive approach or partnering if you have others in different areas that you can trust.