Success in this business comes down to consistency and building strong relationships.Let me know if you'd like to further connect - I'm happy to provide any guidance. 

Let's break it down with precision:The "Pain" (At First Glance):Your $2.8M sale splits out as:Building (§1250): $2.3MPersonal Property (§1245): $500KOriginal Basis Allocation:Building: $1.6M (depreciated over 27.5 years)Personal Property: $400K (fully depreciated)Building Depreciation:Annual: $1.6M ÷ 27.5 = $58,182Total over 10 years: $581,820Gain Breakdown:Building (§1250):Sale Price: $2,300,000Original Basis: $1,600,000Less Depreciation: ($581,820)Adjusted Basis: $1,018,180Total Gain: $1,281,820Unrecaptured §1250: $581,820 (25% max rate)Capital Gain: $700,000 (20% max rate)Personal Property (§1245):Sale Price: $500,000Adjusted Basis: $0Ordinary Income: $500,000The Strategic Play:Remember those suspended passive losses you couldn't use?

I’ll definitely make that a priority as I build my team.I also appreciate your point about using different contractors based on the scope of work.

I have helped hundreds of investors execute 1031 exchanges and build diversified portfolios across various excellent markets, all while using just one property management service.

The FEMA 50% rule does come into play, but we do a lot of ground-up construction, so some investors that do have some new build/heavy rehab experience are tearing down and building back to current codes.

Hoping for $325,000 for the build (budgeting for $400,000 with overages).

Also unfortunately, we haven't held anything yet to build a portfolio.

It was character building for sure but I knew it was unsustainable.

It can be done but it may take years to build up cash flow especially if you live in high cost area like CA.   

Does this matter if you're not optimizing for building a ton of wealth to pass onto kids?