And your gain will consist of two potentially differently taxed amounts - depreciation recapture and profit.Takeaway - BRRRR to your hearts content. 

I do agree that it is a huge risk and not for the faint of heart which is why I’m taking a temperature on here of whether experienced investors feel I would simply be taking a risk which requires certain considerations and precautions or about to do something completely stupid.

So it's not like Turnkey is pain-free, you have to do the work and know how to avoid being taken for a ride, like pretty much any big financial decision in life.I am always happy to provide info to new investors, as it fuels my BP addiction anyway ;) But before you or your friend make any decisions, it's crucial to have a serious heart to heart about what the goals are for the investment and what your needs are with regard to time commitment, risk, and control (do you need to be near the property, do you need to be in charge of tenants?).

As I heard someone say once, your head is over your heart for a reason.

I am a newbie but not at heart.

I am a newbie but not at heart.

Only viable solution, and I know that people who love old houses too much and know too much about them shouldn't be in real estate, but it still breaks my heart to do this.

Also it is the Heart of Texas. 

I live in the Hampton Roads area of Virginia and when I am driving to and from work I see lots of bandit signs and my heart just flutters because I know that I need to get into the game.

It’s a space I’m afraid of, but where my heart really desires to go, because I KNOW that that’s where the money’s at..not in SFR.