Do I pay 3/5 of the capital gains tax?

As we celebrated the birth of our first born, and I worked from home, the walls closed in – so we went in search of a larger home and decided to rent it (we got just enough to cover the mortgage, but the taxes went up and before long, the difference was $100+/-month) …..and we took the first tenants who showed interest with $ in hand….which, unfortunately, were college students (The largest school in the nation , UCF, is 10 min away).

On your final point, about money, are you saying keeping some cash in spite of having to pay capital gains to get it?

Actually, I was just at Disneyland yesterday lol.We are as close as you can get to the parks, we understand why people are going to the area and we try to capitalize on it. 

Some additional detail / other thoughts:Low down payment as I'm looking to invest out-of-state for cash flow with the leftover capital.

I have heard they are the worst in the nation, but how do they compare to Texas', which aren't great either?

Hi BP'ers,I'm in contract to purchase a property in the Easy Bay and I'm working with several partners on the deal that are contributing capital.

You separate the holding company for a number of reasons: rental income is taxed at a some of the lowest rates, and the risk of loss is different in character than that of running operations, its tax filing looks different (as a business) than a business that runs operations (deducting capital improvements, etc.), among others. 

How much capital is needed to get the other 40 odd units to market? 

That's just what I have found to work in my area.However I try to be all in at 60% when I run my numbers so that I can refinance all my capital back out and still be 60% financed and have the same cash flow.