These can vary substantially within even a short distance, but it can understand quite considerably over a long period if you choose property carefully.

Over our ownership period so far we have improved exterior appearance and certain internal features so that the units work better for the tenants and we have increased rents marginally.

Lets take a look at the numbersOriginal Purchase: May 16, 2018-Purchase Price: $50,000-Closing Costs: 2,700-Rehab Costs: $10,650Total All In Cost: $63,350How I Financed Originally: -25% Down Commercial Financing ($12,500 down)-$37,500 Loan Amount - 5/1 ARM amortized over 20 years-5.25% Interest Rate-Monthly Payment: $365/monthRefinance Period: -Refinanced following completion of construction 4 months laterNew Loan: October 2018 -Appraised Value: $94,500-New Loan: $67,500-Closing Costs: $1,500-6.29% Interest Rate - 5/1 ARM 20 Year Amortization-New Payment: $692/monthI was able to take all of my original money out of the deal and pay myself a small $4,250 tax free payment "Just Because 😏 "I now have $0 in the dealCurrent Rents: $1,049/monthCurrent Cash Flow After Refi: $357/monthResale Date: December 2021-Sale Price: $112,846-Current Loan Amount: $55,422-Closing Costs: $3,350.92-Commissions: $6,635.34Total Net Profit: $46,123.64I"ll now be doing a 1031 exchange and rolling that into a longer term multifamily building.

One follow-up question:  In terms of calculating the number of years of rental income it would take to "make up" for what you'd get if you took the alternate route to sell now and avoid capital gains.... does it make sense to say, for example's sake, we sell after the 2-out-of-5-year period and profit $280,000 ($700k sale price minus $420k purchase price), and at a 20% capital gains tax rate, we'd pay roughly $56,000 in taxes on the profit.

We purchased a property in Flagstaff, AZ in a golf community about 5 years ago with the thought of doing short term rentals for periods when we were not using it.   

Cap on 3 in a rolling 12-month period. 

There is usually a seasoning period.

Hey Everyone, During our due diligence period, we found that we will most likely need to bring up an older building to code in order to build out an existing structure to multifamily in Tampa, FL.

All tax sales in Texas come with a redemption period. 

We plan to fix up units (some are fairly dated), raise rents as tenants move out and then refinance once our seasoning period is over.