Hi Jared, I work with a lot of CA based investors who purchase rental property outside of the state.

Even if you charge 0% interest govt will say sorry but we charge min. based on AFR which is around 4% ish. 

An alternative I've considered is renting while in CS and buying an area with a lower cost of living in another part of the country, which of course wouldn't allow the VA loan to be used.

🏠📈 Real Estate Update 📉🏠Here's the latest market report (based on single family homes):🏡 Mortgage Rates:30-year conventional rate today is 7.01%30-year VA rate today is 6.46% 💰 Median Sales Price:February: $460,000March: $475,000📈 New Listings:February: 1,669March: 1,798📅 Median Days on Market Until Sale:February: 21March: 16⚾ Oakland A's Move to Sacramento for Interim Ballpark: The Oakland A's have announced their relocation to Sutter Health Park in Sacramento starting next season, sharing the Minor League stadium with the San Francisco Giants' Triple A team, the Rivercats.

What are the capital gains calculated based on (sale price on purchase agreement)?

I am renting the house based on market rent, not how many people live there as tenants pay all of the utilities themselves.

@Jessie DillonIt would play out based on your operating agreement.

I analyze based on the return that we are getting with our investors' money. - Annualized ROIFor Rentals that we hold in our portfolio, that were perhaps once BRRRRs, I analyze based on ROE - Return on EquityHope this helps

Compensation would be based on the successful closing of flip properties. what would be fair compensation in this case?

That's a really rough summary and just based on my recollection, but the point is there are solutions available.