Yes you have to pay capital gains on selling your properties, but you will recover that quickly with the high returns. 

You gain experience for the next one.Fear’s just a sign you’re growing.

|The gain that you have is ikely passive.

You’re in the right place to meet like-minded investors and gain local insights.

If your primary has a net $1M appreciation you’ll only pay $100k cap gains tax - that’s a lower alternative than what you propose.

Once you start closing deals or handling larger transactions, form an LLC to protect personal assets, build credibility, and gain tax flexibility.

For the 20% down, it’d lower your mortgage and eliminate PMI, but buying now could help you start building equity and gaining appreciation.

Simultaneously, if this vacancy is a high percentage of the buildings total SF, I would market the property for sale to an owner-user who may be able to fill the vacancy at preferred rates while gaining investment income off the other tenants.

When the syndication is sold in future years, are the gains, depreciation recapture, and distributions also taxed as active income?

Sometimes you're better off just selling, taking your tax-free gains and going from there.