There will still be some proration of the gain that you will have to pay and you will have to recapture depreciation.2.  

I want to do this buy purchasing a mix of multi-family and single family homes, my primary focus is on multi-family at this juncture, and I am currently on the prowl for my first multi-family home in the Tacoma area.I look forward to participating more in this community and gaining the knowledge I will need to be successful. 

If you have a Roth IRA, you won't pay any tax on the revenue generated by the property, nor will you pay taxes on any gain on sale of the property later.  

Selling would trigger capital gains and depreciation recapture (15% and 25% tax, respectively) unless you lived there for 2 of the last 5 years.

I look forward to hearing any bits of wisdom, or advice you have gained over the years.

I'm hoping to gain valuable knowledge... for that thanks in advance.I am in the process of acquiring my very first rental property.

You'll pay capital gains tax on it if you don't do a tax-deffered exchange to a property of greater value

Glad to see there are a few members from our small state:) I close on selling my first property in two weeks and boy am I glad to chalk this one up to gaining a great deal of learning!

That part of Vermont should garner you some great tenants, relatively cheap 3-4 family properties and be within easy reach for personal attention.There is a REIA meeting trying to gain some traction in your area as well.  

I spent day and night on this site gaining as much info as possible and once I had all of the pieces in place, I froze.