My understanding is also that loan proceeds are not taxed and therefore since we have only $11k in debt and almost $200k in equity we could afford to get a LOC or other low cost loan to finance the improvements and have a non taxable event with the little bit of interest being tax deductible. 

I currently work at starbucks and i am working on building my credit and saving for my first property after two years of taxable income.

This lets them get paid out of proceeds from the sale with out you incurring a taxable event.2.

It sounds Ike your income is going to be taxable.

3) If it just sits in the investment account, can I still accumulate taxable interest year after year until I use the cash for an income-generating property or stock?

Michigan has some of the most complicated property taxes in the US.First, Michigan uses the State Equalized Value (SEV) to determine INITIAL Taxable Value.

The county website tells me two different numbers: the total assessed value and the total taxable value (attaching a screen shot).Then, I wanted to find the tax rate for the fiscal year 2021-2022 by clicking on the tax district.

Ideally, it could be a long term buy and hold, where the asset is continually refinanced, cash is pulled out, but you are not creating a taxable event.Full disclosure btw.

The taxable gain is calculated as the difference between your net sales price and your adjusted cost basis (original purchase +capital improvements - depreciation).Depending on these factors you could actually have a much larger (or smaller) tax from the sale. 

It's got a land (value, I guess) of $104,400 and a total net taxable value of $104,400.