I'm bad about learning and not doing.I've also seen strategies where people buy downtrodden homes, fix them up, refinance, and then take out a loan on the appreciation, and buy another home.  

@Allen Fletcher is right on in his assessment of the actual tax being dependent on past use (actually 500K tax free is the top exclusion if you're married and have lived in the property for 2 out of the last 5 years) and future strategy (depending on your path you could exempt all or part of the tax in a 1031 exchange).Your accountant paints the current picture better than anyone.

Hey BP community, I'm trying to get a handle on the BRRRR strategy and although I think I've got it I have 2 quick questions:1.) 

Also my strategy is to buy and hold so while the balloon note works for many investors, it doesn't work for my strategy.

Buy or inherit and hold all their lives while working the properties for income.I've seen teachers, firemen, software engineers and all sorts of people utilize both strategies successfully.

Would also love to meet with someone and talk about buy and hold strategy. 

I am more leaned towards Real Estate investing and hope to focus and learn more about buy and hold strategies for rental cash flow, but I am open to all learning opportunities!

Crystal,You could use the BRRR strategy, which involves using a hard money lender to buy the property and then rehabbing and renting out the property and ultimately refinancing with a traditional loan.

I highly recommend The Book on Tax Strategies for Savvy Real Estate Investors by Amanda Han, you can get it right her one Bigger Pockets.

Hey Tamiel Kenney, that sounds like a great strategy for planning upfront to buy, hold and rehab- market permitting.