I'd sell because you are reaching the time when you lose the cap gains exemption and that $24K would take over 2 years of renting to get back.I had a condo that I owned for a long time and I sold it despite it being paid off and having long term tenants. 

This avoids probate and ensures a step-up in basis when inherited, reducing future capital gains taxes.No reassessment since ownership doesn’t formally change.

Hello Dana, For that purchase price in Brooklyn, NY, you could be looking at considerable unknown expenses at this point.If the property is occupied, you'll have to factor in attorney fees and holding costs while you wait to gain access to the property.Furthermore, you could be facing additional costs related to title issues: open permits, violations, liens, judgements, etc.

At this time the primary goal is passive income and then scale within 5 years as I gain more experience and network. 

If I do, I need to sell it by July 2026 in order to not have cap gains.

Trying to gain as much knowledge as possible before entering a market that's over saturated with too many uninformed individuals.

You are not going to make anything on it, so you will not have to worry about capital gains. 

Consider reaching out to a local Rental Owners Association to connect with experienced hosts, gain valuable insights, and access resources that can help you navigate property management more effectively.

Expect significant renovation, so having a reliable renovation crew is worth its weight in gold.

As ground-up ADU builds gain popularity I hope we see some affordable options, like modular, but from what I'm seeing now the ROI just wouldn't be there.I'm trying to help spread the word about this law and compile as much information as possible so I can help investors capitalize on it.