Basic Capital Gains and Tax Questions!

[Michael Freiberg]

I know this is very basic, but I am just starting the educational segment of my journey. I own a 1400 sq. ft. condo in Denver, CO in a up and coming area. I am renting it to friends (I know this is a no no), basically because I had to move quickly and I can forgo the property manager since I trust them. My monthly mortgage/insurance/taxes and HOA combined are $1236.8/mo. I charge 1345/mo. How bad am I losing out? Market is definitely around 1600/mo give or take in that area. This will be the only property this ever happens with. A few questions: how does a landlord manage the capital gains tax that comes along with not living in the property? How does this get figured in? Also, how long is it best to hold a property? I understand that after a set number of years (not sure on that number???) you cannot claim depreciation which means everything is filed as income and you will create more gains thus greater taxes? Thanks for anyone willing to take a minute to get me started on this.

All the best,

Mike Freiberg