@Felicia NituIn addition if you actually want to realize that value, you need to count another 5% for selling costs, and the taxes from the sale.Assuming a 20% capital gains tax, your total ROI on the above scenario would be about 12%, even with the numbers you were using. 

For those of you who are starting out and want to learn more about real estate depreciation and cost segregation! Cost segregation can be a complicated topic, but I tried to make it simple and easy to understand!
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From a tax perspective, rental properties offer benefits such as depreciation deductions, 1031 exchanges, and potential short-term rental (STR) tax loopholes to offset W-2 income.

When accounting for carrying time on the bridge debt, taxes and insurance or alternatively over raising equity to take down the land, the costs add up quickly.  

Focus on cities with favorable price-to-rent ratios, population growth, and employment trends, such as Des Moines, Oklahoma City, and Charlotte, while considering factors like landlord-friendliness and property taxes.

.• Public Records & County Websites:Local county appraisal and tax records can be a goldmine for owner information.

The intent of 1031 was not to let passive investors get out of taxes. 

.- 1031 exchange opportunity: I could potentially do a 1031 exchange to acquire a duplex or triplex, deferring taxes.- Access to funds: I could consider a cash-out refinance or a HELOC to access funds for additional investments.- which property would you recommended me to keep? 

If all goes well, my monthly payments could drop about $60 from a tax reassessment in about six months.

Florida has some strong rental areas, but things like insurance, taxes, and property management can vary a lot depending on the city.If you ever want to compare notes or chat about market trends, happy to share what I’ve seen!