We did a 1031 exchange to roll the money into our dream home.

Income Tax Return for Estates and Trusts.

When doing your calculations - be sure to include principle, interest, property taxes (what your new ones will be - not what the current ones are - because after 1 year they reset to what you paid on the property), property insurance, and a maintenance reserve (we use $100/door/month on maintenance).  

Please no comments on how I'm losing money and I should get better cleaners.

Hi Yu Jin,Dayton is a step up from Toledo but also comes with a step up in price.The numbers make sense in many Ohio cities.You make money when you buy and not when you sell.So look for off market (We do a lot of direct to seller), negotiate hard, buy with cash and buy quickly.Great deals don't last so you need to know the numbers very well in your target market.I've flipped hundreds of properties in Toledo since 2014 and am glad to say that I know the market like my back pocket.All I need is the address, scope of work and how much I can buy it for.Quick access to AREIS, the MLS to run comps and "ka ching".I know if it's a deal or not.Immerse yourself in the market and become a market expert on the numbers.Nothing comes easy mate and all good things take time.If you are looking to build a rental portfolio in Ohio you have to build a big one.Buying 1 or 2 properties and expecting a significant impact to your bottom line from a net-worth or cashflow standpoint isn't worth the risk IMO.In all sub $100,000 markets, it's important to build a large portfolio as there is a high likelihood that you will have repairs and vacancy on 1 or 2 properties at any given moment.Just my opinion and all the best.

When you donate appreciated securities that you have held for more than one year, you can avoid paying capital gains tax on the appreciation.

Yes, when you exit real estate, you can face a big tax bill.  

My main concern is regarding cost-basis and future capital gains tax when I ultimately sale the property. 

The issue with doing this method is it takes more money up front for the renovations, you are buying older properties which may have more needed capital expenditures, and it takes more time and energy.

It is a legitimate way for them to make money off of inexperienced investors.