The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.  

Solo 401(k)s are not subject to UDFI (Unrelated Debt-Financed Income) on the capital gains from selling a debt-financed property, per IRS rules.b.

I don’t know your exact situation, but I expect principal paydown and appreciation to cover the $200 and still give you a nice gain.

It also gets you into real estate sooner and lets you start gaining experience as a landlord.

Upon sale, gains are taxed as long-term capital gains, calculated as the sale proceeds minus your adjusted basis (initial investment reduced by any return of capital).

After five years, you'll have earned $90,000 in rent income and gained $34,000 in appreciation.Buy four houses with $50,000 down on each.

Have some real estate under my belt but looking into Short term rentals opposed to long term rentals.Wondering if there is a stand out book to read to gain understanding for Australian Short Term rental market/AIRBNB.Also if there is a specific group for Australians and short term rentals for Australian market/Australian tax system etc, do point me to that.Rod

A 1031 exchange would allow you to move into better properties in different locations while indefinitely deferring all tax on gain and depreciation recapture.

I’m looking forward to gaining more knowledge and receiving the right mentorship.

Let's see: You sell one property, and to avoid paying cap gains tax, you then reinvest those profits within 45 days into a larger "like kind" property.