Focus on Education and NetworkingBuild your knowledge: Continue learning about different real estate investing strategies and market trends to make informed decisions.Connect with other investors: Network with experienced investors in your area to gain insights and potentially find partnership opportunities.    

We are being conscious of property tax on a vacant piece of land (our potential liability) as well as the potential capital gains taxes (their potential liability). 

What can I do to gain experience/get a job and get noticed in this field? 

It’s great to hear from experienced investors like yourself, and I look forward to gaining more knowledge and making informed investment decisions.Thanks again for your support and encouragement!

You have to pay depreciation recapture and gains on the pro-rated time it was a rental.

That’s fine but how big is the gain?

If the ADU doesn’t meet IRS guidelines, you could face capital gains tax liability.

Since Texas is a tax deed state, you gain ownership at auction, but the previous owner has 6 months to 2 years to redeem it by paying your bid plus 25% interest (in year one).

@Lexi Blocksom If the burden of holding the property outweighs the long-term gains, a 1031 exchange allows you to defer all taxes, and you won’t have to recapture depreciation.This option enables you to use the deferred tax benefits to purchase nicer properties in areas with greater growth potential.Once you complete your exchange, you can immediately do a cash-out refinance if you need access to some cash, tax-free.

To maximize my cashflow and gain landlording experience, I’d do STR and MTR in the other units, as well as the other bedrooms in my unit.