Choose a HELOC if the property is appreciating and cash flow remains strong, or a 1031 if you want to diversify or upgrade assets.This post does not create a CPA-Client relationship.

When contract is about to reach 5 years, i plan to make some upgrades on the property and ask for re-finance, hopefully pull out some equity and get a fixed rate mortgage.Let me recommend a backup with emergency fund (equivalent to 24 months operating costs).

After the tenant moves out, we send someone to inspect the property for any damages, including furnishings like a broken vase.

Also hoping that since it’s an 1 year old home, other than minor cosmetic upgrades like design, not much to do.

Taxes are calculated on the gain (e.g. sale price - purchase price + expenses, broken down fairly clearly by @Jake Baker) not just on the sale price.The tax treatment on sale of a Primary Residence vs.

You are talking about a new water service line upgrade right?

Many things like electrical can often be upgraded.

When the transaction closes, the purchase is funded, and we set aside additional funds in an escrow account to pay predetermined professionals to make any required or desired repairs or upgrades to a property AFTER the buyers settle on the purchase transaction.

Plus, living in the property gives you the unique advantage of understanding it inside and out.. making you a better landlord when you eventually rent out all the units.If I were you, I’d prioritize properties with room for rent increases or small upgrades that could boost value.

Secondly the kitchen could use some cosmetic upgrades as well especially considering the bathrooms look so nice.