He said that they purchased an asset with rents that have not increased in 5 years (can't remember exact amount).

You leverage the equity in your existing property as a down payment (or partial down payment) into your next asset.

The next question is asset class.

This is a question for investors/wholesalers that use the website listsource to obtain their leads.

Let me know if you come across any B Assets in good submarkets.

Your tax liability would be based on your cost basis and how long you held the asset (i.e. short term versus long term), and any mortgages and liens (refi, heloc, or otherwise) would have to be paid off in full at closing if you sold the asset. 

@Jonathan Garrett Do you have assets?

Note purchased by Health Savings Account. 84 payments @ 10% $400/month.Typically we don't go down to this asset level, but buyer has skills and plan.

The 401k protection you mentioned applies if you were in a car accident, for example, and someone wanted to pursue your assets. 

That said, we are interested in potentially obtaining our own real estate license, for the usual reasons; MLS access, cut out the middle man etc.