Additionally, there's a fixed self-employment tax.Income Tax: 22% * $70K = $15.4KSelf-Employment Tax: 15.3% * $20K = $3.06KTotal Tax Due: $18.46KRemember to account for any state taxes as well.To defer taxes entirely, you could utilize a 1031 exchange, which allows you to reinvest the proceeds from the sale into a similar investment property, thus deferring the tax payment until a later date.Example #2: Long-Term Capital GainsNow, consider a scenario where you hold onto the property for over a year.Project Details:Property Cost: $70KRenovation Costs: $50KResale Price: $200KProfit: $80K ($200K – $50K – $70K)Since self-employment tax doesn't apply, you only need to calculate the long-term capital gains tax.

Purchase price: $200,000 Pair of duplexes purchased with 1031 proceeds from a previous sale with about 75% financing.

What's your plan with the proceed?

We will, however, need a signed and fully-executed operating agreement or bylaws (depending upon entity type) to proceed.

Talk to local agents to see what they think the value would be post construction and what the rental value / estimates would be If you get answers that make sense to you to proceed from the above then keep unpealing the onion of development and keep performing the next due diligence steps towards making this project a reality! 

If they refuse, proceed with the eviction process.The point of eviction for non-payment is that tenant has not paid rent.

I am thinking to write a letter to his business/company address, showing the interest and asking for the official books if he wants to proceed.

It contains more detailed information on investing insights, analytics, and, particularly, investing in Las Vegas.Before proceeding, note that the charts only include properties that fit the following criteria unless stated otherwise.Type: Single-familyConfiguration: 1,000 SF to 3,000 SF, 2+ bedrooms, 2+ baths, 2+ garages, minimum lot size is 3,000 SF, one or two stories.Price range: $320,000 to $475,000Location: All zip codes marked in green below have one or more of our client’s investment properties (click to enlarge).Overall Las Vegas Real Estate Market InventoryThe chart below, provided by the MLS, includes all property types and price ranges.The inventory level continued its downward trajectory, significantly lower YoY.Rental Market TrendsThe charts below are only relevant to the property profile that we target.Rentals - Median $/SF by Month$/SF showed a slight drop MoM, which is surprising considering the decreasing rental inventory and time to rent.

If they don't vacate on time, I proceed with eviction and prevent myself from getting behind the curve.I manage almost 400 rentals.

You owe capital gains tax on your new property net selling price, minus your original property purchase price, minus the amount the new property cost more than the net sale proceeds of your original property, minus any cap ex that hasn’t been fully depreciated.