Unfortunately, this reassessment is unavoidable, so you’ll need to evaluate whether transferring the property is worth the potential tax increase.If a Transfer Is Not Feasible:If the potential property tax increase makes the transfer impractical, an alternative option is for your father-in-law to secure a Home Equity Line of Credit (HELOC) on the property.

There are several things that come into play with determining if a property sale is capital gains or ordinary income. 

I personally make well over $100k/yr cash flow from 21 buy-and-hold properties here.

. $50k land value on a $600k property sounds very low / possibly incorrect 2.

You generally have to leave 25% equity in an investment property.

Exchange now at 500k over basis into income property with lease back and put option for 300k more. 

They were not terrible, some people would call them C minus, and it wasn't even that much about financial considerations at the time (appreciation was not a thing back then in Milwaukee) but just not what I wanted to own or manage, so I sold them to them tenants - after quite a bit of financial coaching to get them to qualify for a loan.My standard advice is always to buy the best quality property you can afford.

Quote from @Mordecai Ese: I’m 28 and debating whether to withdraw $60K from my Roth 401(k) to help fund a new rental property.

@Zach Howard some copy & paste advice below:)-------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Hello I have a client who needs to do a purchase and rehab loan on a four unit property in New Orleans.