Take your sales price, minus selling costs, minus any capex, minus purchase price and that’s your taxable gain.

@Mohamad Guene Regarding your question, it really depends on the investor.

My total cost is 40k, can resell at around $130.

It will cost less than $150,000 and will need moderate renovation work.

They have different tiers depending on what type of training and resources you're looking for.

Hey Cameron, for experienced investors I can lend up to 100% of the purchase and rehab costs on 1-4 unit properties.

The biggest thing with 5+ units is everything is more expensive, and the inspection requirements (depending on the municipality) are often more rigorous.

For example, if a property rents for $2,000 and costs $200,000, that’s a 1% rent-to-price ratio ($2,000 ÷ $200,000).

Yearly increasing costs will, in time, eat up any profit they have per unit.

However, be mindful of the Section 461 business loss limitation, which could restrict your ability to deduct excess losses in a given year, depending on how your rentals are reported.This post does not create a CPA-Client relationship.