If done right most of these gains are tax-free- $40K in equity capture (profit) with $20K out of pocket and 13% cash on cash thereafter (300%+ returns)- $24K of equity capture with $32K out of pocket and 36% cash on cash returns thereafter (75%+ returns)- $41K of equity capture with $27K out of pocket and 12% cash on cash returns thereafter (150%+ returns)None of the above numbers include loan pay-down or appreciation. 

We are getting a terrible return on our equity but I guess that happens when you are hovering around a 50% global LTV. 

The $1,500 net cash flow you mentioned represents a tightened rental return that could provide consistent passive income.

What is the cash flow/ cash on cash return. 

While this would not necessarily result in immediate taxes (because it can be offset by your lifetime gift and estate tax exclusion), a gift tax return (Form 709) would need to be filed.

Even if a title company were to manage the setup making sure all parties are paid, the cheap debt and cash flow would not be enough to be enticing to any investor even if midterm rental could yield a healthy return. 

Multi-family properties many times provide a better return per square foot than single family, which would be to your advantage as well.As long as you're mindful of the reinvestment requirements and purchase at least as much as you sold and use all of the proceeds, you shouldn't have any issues with this strategy.

Overall it is still a very good city to invest with solid returns.

I would compare my return with any market, anywhere but 1) this is a different San Diego market than the one I have been so successful in 2) while I am a big fan of leverage, I am not a fan of over leverage.

Not sure of very many places you can get that kind of return on a $1,000 investment.So, let's see...initial output of $1,000 ROI of $11,000...isn't that 1,000%?!