You can also consider doing cost seg and bonus depreciation on another deal you buy this year to offset the gains.

To me, life has always been about doing something that I truly enjoy, while trying to set myself up for long term financial freedom by creating multiple sources of passive income.

I mentioned to him I am selling my rental & since it's been slightly less than 2yrs since I lived in it, I won't have to pay capital gains taxes.

That being said I've been encouraged to gain finances through a hard money lender so that I am ready to go, i don't have any problems with this.2) What exactly should happen during the offering process?

@Adam YetterI would say if your partner is strictly passive he should receive between 50-75% of cash flow and equity..

Would this be considered a sale with capital gains implications ?

If you are worth 1.4 million but the time to get to that point was 20 years as you had big equity gains from properties but your job or business itself does not afford much profit cash flow annually.

But, depending on when you inherited that property you may not have much built up gain if any because the basis of the house is "stepped up" when you inherit it. 

This change alone stands to gain me $150k+ in equity due to the increase in NOI.My concern is that firing this PM may prove complicated due to his status as a tenant.

My goal is to have enough passive income to live off of.