Real estate is one of the most powerful wealth-building vehicles—but only if you know how to play the game. 

This allows you to use all of the tax and deferred depreciation recapture to purchase the larger MF propertyA consolidation exchange is where you sell multiple investment properties to purchase a larger and nicer investment property, but you also get the benefit of using all of the tax you would have had to pay to your advantage.

Hi @Bryce Cover,First, congratulations on your growing family and your successful real estate investment so far!

Quote from @Shiloh Lundahl: @Jay Hinrichs so it sounds like you don't feel like you got punched in the face by real estate over the past couple of years. 

As a contractor and cabinet maker it made much more sense financially to purchase a home with a rental unit and manage the property myself.

My partner and I are looking to get our first out of state property in Oklahoma City.

Effectively no, otherwise everyone would do it and there would be no rent controlled buildings.If the property becomes vacant there are scenarios you can remove it from rent control. 

But ya have to make some educated prognostications in life.Add this to the information your processing - What your talking about doing is eliminating around $4000 or interest expense (which is deductible anyway so really could be a real impact of eliminating $2800 or so) of debt in exchange for paying over $10K in capital gains tax (don't forget possible state gains tax as well).  

For real estate just start analyzing as many deals as you can so you get more comfortable and confident.

I have my eye on two properties.