What would the capital gains be on the sale of each lot? 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $20,000

Cash invested: $45,000

Sale price: $99,000

Contributors:
Peter Vekselman

Partner Driven...

I would sell and take your gains.

No capital gains! 

But, this will be front-end weighted and gradually slow towards the back half of the year.

Not so much ;)So now investors are feeling the weight of dog properties…be it higher interest rates, non paying tenants, property values falling, government intervention (especially in CA), etc.

Did the proceeds from the sale count as short term or long term capital gains?

@MIchael McCUe   I get it, it feels like an incredible weight that you could easily lift with bankruptcy.

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

@Eric Andersen definitely put weight into what @Michael Baum wrote and do your own research on the city regulation/zoning.