The idea is not to completely ignore cash flow, but rather to seek deals for their potential for equity gains, even if that means a modest cash-on-cash return.Due to the combined forces of value-add, market appreciation, amortization, and leverage, seeking deals that build equity can generate large amounts of capital with which you can reinvest.

It might make sense but talk to a good tax professional.If you have lived in the "Family Home" for 2 out of the last 5 years there is a capital gain exclusion $250 or $500k depending on filing status. 

I don’t have much practical experience yet, but I analyze properties every day and try to understand how the market works.I’m at a point where I want to start investing, but I have limited resources and many possible paths wholesaling, get a w2 job for a DSCR loans or fha, flips, etc.).I’d love to hear advice from experienced investors: if you were in my position at 19, what would you do to start building a real estate portfolio or gaining real experience?

Normally, Real Estate is considered a Passive Loss when it comes to depreciation of the building, and any other expense.

When you 1031 exchange, the capital gains that you had from 18 years ago will also be deferred into the new replacement property.

If those expenses truly didn’t reduce your taxable income, it’s likely due to the passive loss limitation.So what does an LLC actually help with?

And now, engaging into adjusting layout, maximizing bedrooms and going to turn into a sec8 rental and gain another 30% gross revenues.     

I would also make sure you have plenty of reserves. airbnb arbitrage is not exactly what I'd consider passive.

Stocks are significantly more passive.   

Land speculation - 20 + %I’m interested in learning what other passive investments investors are seeking as to ROI?