I purchased my first investment property in NC (previously properties were in California).

As a joint owner, only her share would receive a step-up, and you'd still owe capital gains tax on your portion based on the original purchase price. 

One common advice I have noticed is purchasing a duplex or multi family home in your area or at least 30 miles within proximity.

@Nina PenuelaOne of the things we have seen, specifically in Ohio and Indiana is local building authorities target out of street owners with ridiculous fines and make life miserable.Had one where the porch light was out and charged a $50 fine.Another one claimed grass was not cut because it rained for 1+ week and did a $400 fine.

I am new to real estate investing and was looking into taking a heloc on my primary to purchase land and do a construction loan.

So I recently just purchased my first rental property.

Each deal is specific to your over all plan and the timeline in that plan. 

For me, I much prefer to purchase from wholesalers or directly from the owner.  

The property I am looking at has equity and only a purchase money loan (1st mortgage).I understand the basics, Wining the bid, gets me the deed subject to the existing loan. 

Then I purchased from Amazon, Wayfair, Etsy, and Costco.