Tax Benefits: Real estate investments offer a variety of tax benefits, including depreciation deductions and the ability to defer capital gains through 1031 exchanges.

Let’s say it appraises at $185,000 and I then want to pull my equity out of the house. 20% down would leave $37,000 in the house and in exchange only $2,000 out of my pocket ($185,000 appraisal value – $150,000 my previous equity value= $35,000 for the down payment with the $2,000 coming from my pocket).

If you have a “large” gain (say over $100k after selling costs) and don’t want to do a 1031 exchange you should not close on the sale until December 2024 to make the profit tax free.

I bought at precisely the right time for cash and it cash flowed beautifully.

I would first suggest a 1031 exchange to where you pay no capital gains taxes as you buy into your next property.  

I have been researching the 1031 exchange process and have come across the DST.

Also, try contacting a local appraiser or tax advisor who could provide a precise adjusted cost basis for your capital gains calculation.

It was not a 1031 exchange, so we are now calculating our taxes.

I think we exchanged a few notes about this a month or two ago  

Quote from @Glen Wiley: I suspect that once I retire from my W2 I will probably set up a direct booking channel since I'll have more time but for now I am accepting the risks of depending on the OTAs in exchange for the benefits.