This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

Gaining knowledge about investor loans, like DSCR loans, can be particularly beneficial.

My main goals with these initial projects are:1.Gaining valuable insights into the local market.2.Getting hands-on experience with out-of-state investing, particularly when it comes to remodels and managing from afar.3.Testing the entire BRRRR process to see if it’s the right strategy for me long-term.If all goes well, I’d love to scale up and explore multi-family projects.

How can assets be moved into a LP's name without triggering capitol gains? 

I'm reading books and listening to podcasts and such but having someone I can shadow is a more valuable educational experience.

By adopting the house-hacking method—living in one unit while renting out the others—we plan for the tenants to cover the mortgage and gain valuable property management experience.

•Deal evaluation: Simple, actionable advice or tools to help me confidently analyze and structure deals.I’m also looking to network with wholesale-minded agents, understand local buyers’ preferences (buy boxes), and explore mentorship or partnership opportunities that can help me gain momentum.I’m eager to learn, take action, and build something impactful for my family.

Hey Gene,Thanks for the valuable insight.

Hey @Robert Ok BiggerPockets has played a valuable role in my own real estate journey over the past 8 years.

Let’s break this down:The case for holdingThe 4.75% interest rate is a valuable asset in today’s high-rate environment.