As you're just starting out in Austin, focus on learning the local market, particularly areas with good rental demand and lower entry prices.

A nice but expensive duplex on a beach or in an expensive area might be ideal, if you can swing the other half out of personal funds. 

To get started, continue learning through podcasts like the BiggerPockets Real Estate Podcast and books like "The Book on Rental Property Investing" and "Set for Life."

Also, I've recently learned about these different REI tactics.

This is a great place to learn and to connect with people so take advantage of all the great resources.

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?

It’s a business account and I just checked, paying 3.95%, more than my personal one!

I have no personal experience with them but they are the only company I know of that are built more for self managers and small portfolios. 

Highly suggest coming out to some of the local chicago IN-PERSON meetups! 

You’ll make less money but you may learn more along the way for future projects or reduce the headache factor (which can be significant).