@James Boreno You’ll likely owe taxes, but don’t forget to account for your adjusted cost basis, which factors in the original purchase price, depreciation over 10 years, and any capital improvements.

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.

The factors you mentioned are very important to keep in mind for any investment, but I like investing in areas I know. 

If you learn to drive a stick, driving an automatic is no big deal.

* What are some factors to consider when identifying these hot spots?

Hey Patrick - we are targeting more sophisticated investors who will appreciate our approach to help them drive NOI margin and make informed buy/sell decisions.  

Ignore the $1,250 per month because that's your cost of housing, if you didn't pay that on the home you'd have paid that in rent so that's a non factor. 

It takes getting off the road everyone else is driving (the MLS) and putting some work into it.

@Chris Ke With $200K for a down payment and the ability to invest full-time, consider starting with a 4-plex or multiple single-family homes (SFHs) within a 5-hour drive of Los Angeles in areas like San Bernardino or Riverside.

This will help you understand the qualifying requirements, key factors to consider when purchasing, and how to assess whether a property might be a good investment at first glance.