@James Thompson Transferring property from your in-laws to you can be done through a gift, sale, or trust transfer, each with different tax implications.

Since my adjusted basis is about 50K, am I going to have a $250K gain on my income taxes this year?

Definitely a question for a tax attorney/accountant, especially with the dollar amounts involved. 

Talking to others also gave me insight into different markets and strategies, which made it easier to figure out where I wanted to focus my efforts.A simple tip I’d give is to start small and grow gradually.

Your not correct under many different circumstances.First property tax is 1.1% (fairly safe) with 2% annual increase (prop 13).Next expenses include a lot more than property tax and interest. 

Your advice about gradually raising rents to minimize turnover is a great tip that I’ll be sure to follow.

@Brett SiegelWelcome to the community and be ready for a huge amount of information at your finger tips.

Quote from @Melanie Baldridge: In 2025 the bonus depreciation rate is 40%.This means that if you bought a property for $1M in 2025, did a cost seg study and found $300K in eligible assets that you could depreciate, you could take 40% of that $300K as bonus depreciation to offset your income in the first year.40% of $300K = $120K.You then apply that $120K to the owner’s personal tax rate to find the final amount that they can defer in year 1.If your tax rate is 37%, you can defer $66.6K.This is a big deal even at the 40% bonus depreciation rate this year.It’s a massive benefit 

Bonus depreciation will finally be phased out in the 2027 tax year This is well said

My son currently lives in the townhouse b/c he is going to school and works in the area.Since he is young and starting out in life, I would like for him to only cover the basic costs (taxes, HOA, utilities) just enough for me to break even (I believe that will put him slightly little lower than market rent rates).