I have 1 bank account that I use exclusively for my real estate holdings.

Exclusive Agency or Exclusive Right.

Some, who exclusively bought REO’s, now also buy short sales, probates, and at the steps.

There is an exclusion of $500K for a couple, $250K for a single, for gains when you sell a house you've been recently occupying.

I would require exclusive listing rights to all new homes produced from the site.

Does the seller have an exclusive agency agreement with the listing broker or an exclusive right to sell agreement?

@Mindy Jensen Divorce is an unforeseen circumstance and allows for a prorated application of the gain exclusionPartial Exclusion May Be Available If you don't meet the eligibility test, you may still qualify for a partial exclusion of gain if you moved because of work, health, or an unforeseeable event.You can qualify either by meeting a set of standard requirements (the “safe harbor” provisions) or by showing enough facts and circumstances to validate your claim.Unforeseeable events.

Then you could sell with up to $250k capital gains tax free after living there 2 years, or rent it out for up to an additional 3 years also with the exclusion, or hold as a rental indefinitely.Great way to learn all about how construction works and managing tenants hands on too, BTW.

So far, I've almost exclusively used cash to build our small portfolio.  

Sorry, Jason, but flipping and passive income are mutually exclusive.