Great way to start building wealth, appreciation, gain the tax benefits all while learning to be a landlord (if you don’t hire a PM) and live either free or pay way less than you normally would for rent.

However, she said she had house hacked this home, wouldn't she better off selling the home and capturing the gain tax free. 

And maintain your 1031 exchange capital gains and recapture tax breaks as well. 

You can only 1031 exchange long term rental "Investment Properties" and property that is used for business "Owner Occupied".However, since this is hypothetical, if the IRS allowed you to 1031 flip properties, then you would pay taxes at your capital gains rate (once you sold the last property and didn't replace it) on all the gain from all the properties and 25% on any depreciation taken during the the hold periods.

@Tarik TurnerYes, lots of confusion as I am just gaining information and new to all of this.

Hello - I am looking to gain new policies (or at least, quotes) on my properties.

What is capital gain tax rate on sale of rental property?

I see SLC as being an appreciation gain market.

Use this to gain experience as to what you can do next time to avoid this, either on the tenant screening end or on the preparing the unit.

I'd like to gain a marketable skill to add value to an investment team, or to an investor who'd be willing to share some knowledge.