We also fixed up our first owner occupied houses, lived in them for 2 years to get the capital gains taxes excluded and rolled those funds into the mix.  

I'm also a grad student so my financial situation is not actually the best and I'am currently enrolled in a credit repair program (hopefully that helps with potential loans if need be) so I was thinking that maybe NACA would be a great start to purchase a multi family to house-hack and product passive income.

Buy and hold for passive income is so much different than flipping, one is fairly passive once the property is stabilized and provides ongoing income, the other is a job - find it, buy it, rehab it, sell it, REPEAT.Tell your realtor what you are really looking for instead of them just trying to find you their next commission!

Those will cash flow nicely, but there isn't as much on the equity capture, so it's a mixed bag depending on your goals.An alternative in the meantime is to look into being a passive investor on other larger properties that have lead investors and watch how they run the syndication and their plan to improve the property.

I am an extremely responsible, and genuine person looking to pursue passive income and financial freedom, however, I do my due diligence and am hopeful to find hard working individuals who can be honest with me back and genuinely helpful. 

You'll gain valuable experience while hopefully making some good cash simultaneously. 

He is a passive partner and I handle the rehab and sale to compensate for money I'm not putting in.My recommendation is to make sure you put everything in writing and really make sure you do your homework on the person you're getting in bed with. 

And when you sell the farm via LLC, the gain will be passed to you as if you sold it.

One of their concern is capital gain tax that they incur due to the sale.

@Derek VanWinkleThere shouldn't be any income or capital gains tax consequences on transferring from a single member LLC to yourself, or the other way around.