I have become a little stagnant in my pursuit of real estate, and im trying to get a better view of my situation I would like to get into a multi family property by the end of the year. i bought my first house in 2015 with an FHA loan, and then I decided I probably needed to do some research to figure out what I had gotten into.so far I am debt free excluding my hpuse but i dont have a career, i am employed but its nothing worth mentioning. i have about 70k of equity in my house and I have about 5k saved up.let me have it. what should I do.

As a landlord, I'm more put off by your short term lease than the dogs (we allow them, excluding bully breeds).

This is excluding some other important costs but you can get all of that from BP calculators or from any flipping book which you will want to read at least one or two to have an idea of the process.$40.000 - Purchase price$1.400 - Purchase closing costs$10.000 - Repair costs$2.000 - Holding costs$3.900 - Commissions$975 - Sale closing costs$58.275 - Total Costs$65.000 - Sale Price (I split the difference in your range)$6.725 - Profit before personal taxes $53.400 - Total cash invested (Total costs - commissions - sale closing costs)12.59% - ROI (again assuming no financing)The ROI is not horrible but one thing goes wrong or if you are off on your sales number by just 5% and you lose ALL your profit and take a loss on this as a flip.The property you are mentioning should be a rental based on the limited numbers you provided.

$200k a year or over $1m net worth excluding primary residence?

But remember that only capital gains can be excluded under the 121, not deferred depreciation recapture, so you'd need to speak to a CPA about your specific situation to make sure you know what's what. 

Hi Darren,Diane and Michael are correct; under Section 121 of the Internal Revenue Code you (as a single individual) can exclude $250,000 of capital gains from your taxes if you have owned and resided in the house as your personal residence for 2 out of the 5 years prior to the date of sale. 

You'll have to decide which of these expense items to include/exclude based on your real-world expectations of how you will handle the property. 

Solo 401k is excluded from this tax. 

I set it up as a house hack and estimated 800/mo per unit excluding the fourth that I would be living in. 

Unfortunately, inventory is specifically excluded from being part of a 1031 exchange.There are other tax strategies that you may employ, but that one to defer your taxes will only really work with buy and holds.