I'm not familiar with tax implications of 401K (I'm in Canada). 

However, there is no specific holding period contained in the tax code or regulations and there is no "safe harbor." 

@Rafael Ramos All your goals contradict each other:(1) Cashflow: buy Class C & D properties2) Appreciation: buy Class A & B properties3) Low Crime: buy Class A & B properties4) Why would you want your investments to lose money to lower your taxes?

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

When it comes to being a real estate professional, it actually doesn’t have anything to do with your job title or profession.

I’d love your input on whether this deal could appeal to investors and how best to structure it.Property Details:Worth: ~$300,000HOA: $273/month, Taxes/Insurance: ~$170/monthCurrent Rent: $1,880/month (long-term); next tenant advertised at $1,950/month.Mid-term rental potential: ~$2,400/month (I haven’t tried this, but it’s my estimate).My Financing Idea:Large down payment: ~$125,000 (This is my priority to reinvest elsewhere).Seller-financed balance: ~$175,000 at 4.25% for 30 years.Buyers take over taxes, insurance, and HOA.Questions:1.

Another common practice for nationally sparse datasets such as tax data is aggregation.

Focus on smaller single-family homes, condos with low HOA fees, or multi-family properties in these regions, and build a reliable local team of agents, property managers, and other professionals to ensure a smooth investing experience.

A PM is a professional in managing property, not plumbing.  

If you paid under $230k, you’d save $30k in federal capital gains taxes and maybe another $15k or more in state income taxes.