Make sure paperwork is in order and correct before proceeding with any evictions.

I am coming up on the two year anniversary of my first home purchase and have been trying to decide how to proceed next.

Depreciation: For investment properties, you can depreciate the property over a set period, reducing your taxable income.5. 1031 Exchanges: This allows you to defer capital gains tax by reinvesting the proceeds from a sale into a similar property.Feel free to ask any questions or share your own experiences!

You could consider doing a cash out refinance of your current primary as an investment property with a dscr loan.From there get a low cost or zero down loan for your Primary.Use the proceeds left from the refinance to get your next property.There are so many different strategies.

Hi Shane, I'm curious did you ever proceed with the Johnstown properties.  

This can potentially enhance long-term wealth building.Tax Deferral-By reinvesting your proceeds into like-kind properties through a 1031 exchange, you can defer capital gains taxes, allowing you to reinvest more capital.Market Timing-Despite the competitive market, a 1031 exchange gives you a defined timeline to identify and acquire properties, potentially putting you ahead of other buyers who might not be as motivated by a tight deadline.Cons:Lower Initial Cash Flow-Acquiring additional properties may reduce your immediate cash flow, especially if properties in your target market are not as cash flow positive as your current property.Risk of Overpaying-In a competitive market, there's a risk of overpaying for properties just to meet the exchange deadline, which could impact your overall returns.Either one is a valid option, but overall it depends what your financial goals and restrictions are.

However, neither ourselves or the seller have experience in this kind of deal, so understand we will probably want to loop in legal advice as/if we proceed.

Rents are at market level now and I paid off the loan from the proceeds of another house I sold. 

DO NOT proceed without some help. 

If you get the OK, you'll want to form the LLC and create your operating agreement, then proceed with transferring the title of your property to the LLC.