We have been utilizing the BRRRR strategy for a few years with good success.

If we pick one up at auction we usually flip it to another investor & hold the note. 

Insurance, repair costs, capital improvements, utilities, trash, maintenance, and the overall cost of doing business has gone up so much in California. 

@Morgan Van Ness - there are a lot of factors; location, condition, utilities, long term tenants, ectMy clients have rented 2 bedroom units from $800 - $1800sometimes you see properties with tenants for years and they don't raise rents.I have units with tenants for years that are good and I don't raise their rent

@Logan LarochelleUltimately, everything you report on the return can be questioned by the IRS...will they...Your role is to report an accurate return based on the tax laws provided to us.If the IRS questions anything you should say you are excluding the gain via section 121.Show them the closing documents on the day you purchased the home and the closing documents when you sold the home.Then to show that you lived in the home for 2 years - show them the receipts of utilities that are in your name.Likely they won't audit you - but in the chance that they do - you should at least have the documentation.

Pick a solid B-Class suburban area.

I actually picked it up in my grad school library. 

For example HOA, utilities, home insurance.

Experience from our first rental, rent will range from $1,100 to $1,200 plus utilities. 

Josh Caldwell runs the meeting and you will pick up a lot of very good information and meet and network with other investors.