While there's no strict requirement to match the original mortgage terms, reinvesting the full proceeds without financing or using leverage to enhance returns is key.If you don't reinvest the full amount, any shortfall ("boot") will be subject to capital gains tax, and depreciation recapture may apply.This post does not create a CPA-Client relationship.

Some thoughts to consider:If you sell now, you are unlikely to pay capital gains taxes as your first 250k (500k if married and filling jointly) aren't reported.Doing your first rental remotely is undesirable without 1.)

I’d like to have 3 single-family homes and the 5-plex paid off by then, which would give me some solid passive income.

Luckily the family in my rental is paying $9000/mo (3x my mortgage) so I am gaining signifigant wiggle room for mistakes.

Even in those cases, it’s difficult to create a significant gap between the purchase price, rehab costs, and ARV (After Repair Value).Investing in today’s market is incredibly challenging, and I’ve found that the BRRRR strategy is one of the least effective approaches right now.Let’s keep in mind that BRRRR gained popularity before 2020.

Some of the best investment were made in bad neighborhoods and higher crime rates then as usual the area becomes gentrified and continues to grow in both equity and passive income.

@Jade Frank I agree with what @Dominic Mazzarella and others are saying here, but If you find the downside outweighs the gain and you ultimately decide to sell the property, Since the property was held for investment use it would qualify for a 1031 exchange. 

At the very least you will want to have some general foundations set because with time you will modify processes and the learnings via experience you gain.

Address Your Financial ProfileBridge the Revenue Gap: Highlight your equity in the duplex and use your sale proceeds to demonstrate “skin in the game.”Partner to Compensate Experience: A financially strong and experienced partner can help offset your limited track record.Focus on the Land Deal: Secure the land at a good price, as it’s a crucial step in gaining credibility and attracting partners.Final ThoughtsYou’re entering an exciting and impactful space in real estate development.

My interests lie in all areas of real estate, and I am eager to explore potential opportunities and gain insights into effective strategies.