The nice thing is that you get your equity out but are not paying taxes on the gain.

I think a duplex or small multi-family would be a great way to start off due to the benefits you had mentioned, as well as the smaller down payment.

My goal from the beginning was to sell it after 2 years and avoid capital gains.

What is the best book or resource for gaining knowledge and insight on "subject too" strategy?

I plan on investing in the DFW area, Austin, and San Antonio, Tx.  100k SFH'sMy current plan is to read more books, watch more webcasts, and gain more knowledge.Followed by next year becoming a pro member and practicing evaluating SFH deals, so I can get a grasp for what a good deal is.I will start trying to go to meetups around my area and find a mentor.  

My Spouse & I are both dual military so If im right, there might be a slight benefit there. 

If so, what have been the benefits to having this type of business model as an investor?

As well as the site, I have been reading several real estate investing books in order to gain as much knowledge as possible.  

The investment into the Fund has to be from capital gains - any type of capital gains. 

Very often I meet real estate investors who chose to go with a $200 tax return filing accountant who costed them thousands and tens of thousands of dollars in mistakes like miscalculated depreciation, missed deductions, miscalculation of capital gains when selling the property and so on.I understand you don't want accounting fees to eat all of your profits, but I simply encourage to factor what you're getting from your accountant, weigh it against the price and find the combination that works for you.