Real estate investors are using a 2-part strategy to build equity and avoid capital gains tax

• Real estate investors are using a two-part strategy to build equity and sidestep capital gains tax.
• Step one is buying a fixer-upper with potential. Then, you rehab to add value while living in it.
• If you live in the home for two years before selling, you can capitalize on an IRS rule.

Real estate investor Whitney Ekins-Hutten flipped her first property in 2002 with the help of friends, who she paid in "beer, sushi, and pizza."

Over the past two decades, her strategy has evolved from flipping to long-term rentals to partnerships. Her investments helped her achieve financial freedom and allowed her to quit her job in 2019.