It is a slow and gradual process.  

if you have 239k in equity and sell the NJ home, you could use that money to buy a few homes near you and increase your monthly rental income.

Real estate investment is a time-tested method of building wealth and generating passive income.

Being a landlord involves responsibilities and risks, such as maintenance and tenant management, but these are counterbalanced by the potential for steady income and investment growth.Other factors to consider include market conditions in Austin, which have seen substantial fluctuations, and how they might affect future property values.

Most buyers find it more attractive to purchase a place that has some future income built in when they buy it.

My primary focus for this investment is on long-term appreciation potential and leveraging rental income to pay down the mortgage, in this case I have no cashflow.Given the current market conditions, I understand that cash flow might not be immediate, but I'm more interested in the potential for appreciation over time and the ability to offset expenses through rental income.

They are not disclosing proof of income.

especially without being able to increase w2 income very fast?

Build to Rent promises higher income and appreciation but demands a significant upfront investment.

Does he have to report the income he received this past year and declare it a rental event though he would like to move back in eventually?