Its not capital gains tax at all.So, none of what you just replied to technically works.Of course, consult a qualified professional... 

Local knowledge might be helpful, particularly when thinking about niche markets.Expert Advice: Considering the intricacy of your circumstances, consulting a financial adviser or a real estate specialist can offer tailored recommendations based on your unique objectives and position.Remember that every real estate decision should align with your long-term goals and risk tolerance.

My company Stag Advisors provides bookkeeping, tax services, and business consulting, and my experience in real estate allows me to serve your needs exactly.

For further details on this parameter, please consult our user guide.We have allocated a budget of $15,000 for renovations / refurbishments.The purchase price of a 2-bedroom / 2-bathroom unit in this area is $498,000, with 5% of this price allocated for closing costs.A turnover cost of $175 per booking has been factored in, with no rental management fee assumed, indicating that you will manage bookings and cleaning services independently.The mortgage rate is set at a fixed 7% per year, with an 80% loan-to-value ratio (LTV) and a 20-year term.For the remaining parameters in our financial model, please refer to the image above.Taking these values into account, below are the results of the financial case study.Some insights:The results show the anticipated performance of a 2-bedroom / 2-bathroom unit in the southwestern area of Okaloosa Island, Florida.Expected gross revenue amounts to $78,240, derived from 47 bookings with an average stay of 5 days at an average daily rate of $325 (inclusive of cleaning fees).Total yearly expenses add up to $68,014, encompassing various costs from private mortgage insurance (PMI) to property taxes and annual loan repayments.The cash required for this deal totals $139,550, incorporating the 20% down payment for the mortgage, 5% closing costs, and the $15,000 renovations budget.Pre-tax net revenue stands at $10,226, representing a 7.33% cash-on-cash (CoC) return.The annual return on investment (ROI) is 1.9%, excluding value appreciation.

Please feel free to set up a consultation call to see whether he/she is a good fit. 

You can also consult with lenders, brokers and ask them for suggestions on who might be a good real estate mentor and most will be able to provide one. 

The company is K&T Abundance Consulting LLC   Website: https://www.ktabundanceconsulting.com/?

of course, consult with a professional, but recommend starting here https://www.irs.gov/taxtopics/tc701As mentioned, you still have to pay the depreciation unrecapture.Good luck.

I intend to consult a CPA soon, but I was hoping the community could shed light on my question in the mean time.Thanks in advanced!

First, definitely consult what the laws are in your area regarding raising rent.