@Bill Brandt funny you should mention Guam and the USVI :).

As your property appreciates in value, expect your tax bill to be higher as well.

These may cost $100 to $500 each.Attorney Fees: Some attorneys may charge a flat fee, while others bill hourly.

Your profit is the difference between your adjusted cost basis and your net sale.Adjusted cost basis is your cost of acquisition plus any capitalized improvements minus depreciation.It is very possible that you could sell a property you have refinanced and generate no cash at the sale but still have a big tax bill because you sell it for more than you purchased it for.

Quote from @Zach Matson: Quote from @Bill Le: Hey Zach, I tried to look into this as well before and it's kind of all over the place.

Quote from @Bill B.: Again, I like the idea of a new fourplex, it just seems like you’re glossing over alternatives/possible problems. 1) You say you want to hold for cash flow instead of taking $120k cash by selling as soon as it’s built.

When the tenant leaves or there is an eviction, you will be stuck footing all the bills with a low likelihood of recovering it.

The reason for this is that RE market prices are based on numerous criteria.

That's what I did.I'm not saying don't go for condos, but really do your due diligence on the HOA to make sure they are in decent shape so you don't get hit with bills later on. 

Quote from @Bill B.: Because the cost of roofs, ac units, water heaters and so on don’t care if you collect $600/mo in rent or $3,000/mo.