If leveraging equity feels too risky, you might consider using a portion of the equity to fund your next property while keeping reserves intact.

I’m not local, so I’m trying to get a feel for what it’s actually like making deals in this market right now.

(I personally prefer $2M/year and I think that cash flow is plenty enough to cover any mortgage risk along the way, but there's no doubt some people would feel more comfortable sticking to the $24,000/year and that's totally cool too!)

That is where LPs can feel free to share their real experiences without fear of any potential bad blood or retaliation from GPs.

Feel free to inquire about their staff qualifications if it's a larger organization.2.

I'd been working and saving for many years, however, did not feel it was enough.

How do you think the 2 relatives will feel about having their rent raised or being required to pay rent period?

This included modernizing the kitchen with high-end appliances, upgrading bathrooms with spa-like features, and adding hardwood floors for a luxury feel Lessons learned?

So when I see an advertisement like this I feel like it would be a waste of my time and money, but perhaps interesting for others. 

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!