Also think about what capital you have to invest. 

Of the remaining $200,000 gain, 75% (6 out of 8 years) ($150,000) is attributed to the time the property was rented and is therefore taxable at the long-term capital gains rate.

At this stage its capital preservation being the goal.

Transparency, I thought I would never be able to afford Alexandria either.We showed up to Old Town Alexandria and started renting. 4 months later we found an affordable house in Woodbridge we could get into for a year with low down, then rent it, in the mean time we recoup the capital from our other 2 properties to go buy again after that 12 months.

Dee: @Laura Chotkevys how much capital would you recommend for starting this type of business?  

To start, I’d like to ask you a question: What is more important, purchasing real estate where you can obtain 100% return of your capital through the BRRRR investment method but otherwise break even or even worse lose money or alternatively  leave some of your capital in the deal but earn a profit when the property is sold? 

I think the answer to this depends on the amount of capital you will be able to put into the deal initially.

Does anyone know if there is a way to request an increase higher than 3.5% due to all of these capital improvements done on the home?

So not only do you have to do the rental numbers from a monthly perspective but you have to assess what/how much capital you have at this very moment and where is the best place to put that capital into.

Jake Clopton at Clopton Capital would be a good person to call to see if it's a match based on the size of the deals you want to do.