I understand that if you live in a state that does not have a state income tax - you won't have any state tax liability, but based on $110K income, you would be in a 24% federal tax bracket...Distributions from an IRA or Roth conversion would be considered ordinary income and subject to ordinary income tax; capital gain tax is not applicable here, so I'm not sure why you are bringing it up... 

If I was local to the property I would be more okay with it rather than if I was investing in older in a different state.

(These companies would otherwise have been required to report by January 1, 2025.)Reporting companies created or registered in the United States on or after September 4, 2024 that had a filing deadline between December 3, 2024 and December 23, 2024 have until January 13, 2025 to file their initial beneficial ownership information reports with FinCEN.Reporting companies created or registered in the United States on or after December 3, 2024 and on or before December 23, 2024 have an additional 21 days from their original filing deadline to file their initial beneficial ownership information reports with FinCEN.Reporting companies that qualify for disaster relief may have extended deadlines that fall beyond January 13, 2025.

I think my next moves may be an out of state duplex and/or a local flip with a realtor friend of mine who has some experience doing it.

I’m based out of state so would be looking for a company that could assist with day-to-day issues as well as securing tenants.

For simplicity, consider forming separate LLCs in each state for properties, using a revocable living trust for probate avoidance, and securing umbrella insurance.

Have you thought of which states  you will invest in and also the strategy like BRRRR or fix and flip or STR?

Rick Basement square footage and room count are typically not counted on public record but in some states agents list it or are allowed to list it. 

In it's current state, I was getting $1100/mo, I feel I could get $1400-1500 after reno.

Misinformation stating that the guru dropped out of school, was fired from his job, failed in his business startup, but when he discovered” the “secret” of real estate investing, met with almost instantaneous success7.