To markets where you’ll gain long term tax free wealth. 

https://www.biggerpockets.com/forums/51-tax-legal-issues-con...

To minimize taxes, consider the following strategies:1031 Exchange Before Dissolution – The corporation could complete a like-kind exchange, allowing investors to roll their ownership into individual properties while deferring capital gains tax.

Rentals generate passive income, so an S-Corp offers no added tax benefit.

Note origination where the borrower owns multiple properties with little or no debt, needs a loan for an acquisition, but can’t produce proof of income sufficient to get institutional financing.  

I'd be happy to make connections over similar goals, and to learn about tax info for DC, great spots to buy, and trends for rentals.

Sure you’ll be taxed on it.

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.

any lender wants to know how you plan to service the debt.

And 54% of the basis would be allocated to the 200K house.You'll have a small tax bill on the difference between your sale and purchase prices.