The taxable gain is calculated as the difference between your net sales price and your adjusted cost basis (original purchase +capital improvements - depreciation).Depending on these factors you could actually have a much larger (or smaller) tax from the sale. 

Look at the growth of the larger MSA.Hope that helpsJames Kojo

I currently have 2 rental properties and looking to grow into larger multi family.

From all that I read on the forums Kansas City and the larger cities in Ohio provide affordable markets for OOS investors to buy a nice beginning portfolio that cash flows well.

Do a cash out refi with a hard money lender, and use the cash out proceeds as a down payment on your larger deal. 

I do not plan to be a note dealer and would have a loan servicer to do the monthly bookkeeping tasks. 

You have to find a deal with enough meat to satisfy a flipper (which in these competitive sellers markets is no easy task) and then enough meat remaining for your profit/fee.

I could do four walk-in closets in a day, easy, with the time while I'm waiting for the coats to dry occupied by all the other tasks around the place, even with having to wash down parts of walls and scrub the baseboards, and painting ceiling and trim both. 

@Ben Kappel as a general rule on larger deals (100+ units), most deals are sold "as-is".

It puts a larger strain on utilities and opens the door for arguments within the couple themselves.