Your capital gain is calculated as the amount realized from the sale minus your adjusted basis.

@Anthony Klemm here's copy & paste info that hopefully answers your question(s):--------------------------------------------------------------------------------------------------------The Real Estate Crash of 2008-2010 caused real estate prices to crash across the country - but didn't affect rent amounts.

If you need to more than amount per month, you will need to buy more units or buy more than one each year.

That sounds great although like I mentioned, The property would not cashflow unless I put a significant amount of money into the principal. 

The lender is basing the amount they will lend on the income of the other STRs in town....I am trying to figure out how to deal with this...I really appreciate your time...Thoughts?

What is your price range/down payment amount?

Those that are actually good, get called upon/mailed/emailed an obscene amount by other investors.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

I would also make sure you have a good amount set aside if something hits the fan.  

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