For example, should we focus on acquiring one high-quality property in a strong market, or would it make more sense to spread the investment across multiple lower-cost units in emerging areas?

The lower barrier to entry would be excellent for my personally smaller net worth.

You can always use a software like Turbo-Tax and follow the prompts.

It is my understanding that the new owner will have the house at the cost basis of my purchase price, for calculating capital gains taxes or depreciation.For gift tax purposes for you - FMV.For capital gain tax purposes for the recipient - your original basis/purchase price 

Regarding price, do you have any suggestions on how I can get him to agree to a lower price?

When I look at the equity and the 15% Capital gains tax bracket I would likely be in, I would avoid ~$24,000 in taxes if sold before Aug. 2025.- I am aware of my 1031 options should I want to sell and defer taxes beyond that 3-year date (and would need to continue to do so until death if I wanted to avoid those taxes instead of just defer them). - I believe the current rental situation I have is better than the property warrants.

If you're using a DSCR loan to purchase the home, most lenders use the lower of the lease agreement or 100% of the market rent from the appraisal form 1007 to determine the DSCR.

Tax liens2.

A HELOC on your duplex or home offers flexible, low-interest financing ideal for BRRRR, with potential tax-deductible interest if used for property expenses.

Note that the diagram doesn't consider tax implications—that's another important factor you'll need to include in your decision.