Besides, new constructions are selling for astronomical price out of the reach of ordinary Americans (why would they sell for less than a current marker value?

You would have depreciation recapture on the items you depreciated (75k), taxed at ordinary income rates and then any of the actual property appreciation would be taxed at favorable capital gains rates (50k). 1031 exchange will allow you to defer all of that gain as long as you meet conditions.

It’s because the guru’s are NOT selling a real estate program, strategy or technique - they’re selling the American Dream of wealth and financial independence.   

•Depreciation Recapture: When you sell a rental property, depreciation you’ve claimed can be “recaptured,” meaning it’s taxed as ordinary income up to a certain limit.

I just finished their taxes with their CPA and I can say from first hand knowledge that real estate is the most effective way for immigrants to obtain the American dream.My parents immigrated to California in their 20's from Asia with no money, and could not speak English.

However, if you decide to sell after holding the property for over a year, you could qualify for long-term capital gains tax, which is lower than ordinary income tax.

Unfortunately flipping is considered ordinary income.

Did you know that for most Americans, taxes are their highest expense each year?

Most of them left owing more than they paid, which means money was lost and I had to deal with more paperwork and problems than I would with an ordinary tenant.

As an example section 1250 gain is taxed like ordinary income, in contrast generic capital gains has a much lower rate.