After years of focusing on my career and building financial stability, I’m ready to dive into real estate investing and start creating passive income and long-term wealth.My short-term goal is to purchase my first duplex or single family rental. 

Are you trying to hand your “friend” a 50% taxable gain that you’re going to keep?

Accurate records of all expenditures are essential to claim deductions and calculate the cost basis for future capital gains taxes, including depreciation recapture.This post does not create a CPA-Client relationship.

That's where you will gain in cash flow. 

But when it's equity gains, no tax, only at time of sale and if you 1031 Uncle Sam let's you continue to use that tax-$ for investing purposes.

My goal is to gain a solid understanding of the process, master deal analysis, and ultimately close my first deal.Right now, I’m focused on learning the basics — from finding motivated sellers to building a strong network of cash buyers.

So I just wanted to present the raw facts, hear everyone's opinions, and obviously gain some knowledge and tips from investors! 

Given the size of the asset, these won't be huge, but something to consider.REWARD - In addition to the benefits stated above, the only other reason I could see doing one on an asset this size is if you wanted to offset a property sale that would have a large capital gains. 

If not, should I sell stock that I have that has capital gains that would be due on it and offset that?

I lost money (opportunity loss) but I gained a wealth of experience. 2.)