So while moving back into it for 2 years does bring the 121 exclusion back into play, that exclusion is reduced based on the percentage of Non Qualified usage over the holding period.  

I flipped and did some buy and hold when I lived in Florida.   

Either way, with rent and price appreciation, tax benefits, holding long term is a net worth exploder.

Holding is currently challenging. 

But, if a cost-seg study is done on the old property, you can manage Sec. 1245 recapture tax by doing a study on the new property to confirm it has as much or more Sec. 1245 property.You cannot swap a fully depreciated gas station for a raw piece of land and avoid recapture - you must replace all the 1245 and 1250 property.3) OZ - Sure you can defer your capital gains for a few years into an OZ fund, but the magic of OZ investments is the ability to achieve tax-exempt growth after a 10-year holding period.

With the purchase, the rehab, the closing costs and the holding costs (hard money, taxes, insurance, utilities) our all in is around $200,000, but we have created $40,000 in equity.

If you just want to do buy and hold, you can purchase a duplex in a B area for around 150-180k with rents at around $2400/mo total.

Investment Info:Single-family residence buy & hold investment.

As for Cash flow, I think it depends on the deal structure as you mentioned, but also strategy/approach (cash flow vs building asset, holding long term).

It’s ideal for investors with some experience in real estate who are comfortable managing renovations and dealing with tenants.If you're a beginner, you might want to start with a simpler buy-and-hold strategy or partner with experienced investors who can guide you through the BRRRR process.