I have been investing in different kinds of real estate vehicles - mostly passive ones and have sort of stumbled upon an idea. 

My understanding of Capital Gains from the forums and podcast is that I wouldn't have to pay Capital Gains since I have lived there as a primary residence for the last 2 1/2 years?!

I am a flipper who is also interested in building a rental portfolio to gain financial independence.

My goal is to build enough passive income a month in order to quit my job.

I think the theory now is they are not as readily available .. and you do have to work those.. you just dont buy the note and sit back and collect and then get paid off never once missing a payment or ever talking to the borrower.. your in the asset management debt collection business its a business and can be a darn good one.. but think its different than being just a passive note investor.. your a different investor plus your dealing with tiny dollars..  

I am now closing on my 2nd property sometime in May and so I will be going back to house hacking until I gain enough for a 3rd property. 

The 'sell' properties had higher mortgages on them by about 25k (all properties are worth about the same).Well, here we are 3 years later and I just sold one of my 'dogs' for a 100k gain.  

Any cash you take out, up to your $65k or do profit, will be taxed as profit, short term cap gains (ordinary income tax).

Looking to get into real estate investing in the hopes of building a reliable source of passive income for my family.

Who would buy a 10yr bond @ 2-3% when Zuckerburg just crushed 8% gains today in the midst of a publicity nightmare.