.: @Travis Boyd you’ll lose more in interest rate increases, potential property taxes increases, realtor commission and other transaction costs than you’ll pay on any future cap gain taxes.

Add maintenance/cap ex, vacancy, PM, misc and this is likely negative more than $500/month even if self managed (much more than the negative $200 that you indicate you are ok with) 2) if you are behind on mortgage, how are you going to handle being negative $200/month, or more like negative $500/month?

The cap gains and recapture would take $500-700k of the $2.1.

Evaluate cities based on job growth, population growth, rent-to-price ratios, cap rates, and vacancy rates.

Higher cap rate ~ higher perceived risk ~ lower predictability of cash flowLower cap rate ~ lower perceived risk ~ higher predictability of cash flow @Jaycee Greene what would be or is considered a good cap rate?

Also AirBNB stocking fees, maintenance, cap ex.But at the same token know that the principal portion of your mortgage payment is actually not a true expense so there is that benefit to doing all of this even if you are light on the cash flow or break even.  

You should put money away for cap-x and repairs, but also look into detail on the builder's warranty.

You value it based on yearly income and cap rate.

A lot of the flyover states have cheap houses/2-4s but junky tenants and lots of cap/ex. 

Check for cap ex coming, mechanicals, and smart repairs to do now that will save you later.