I made sure they will not be collecting any insurance payouts meant for the building. 

The time of holding the reserves and liquidity are factors. 

I’ll give you that AI can drive machines that one day can build houses to some degree.  

Another CPA can correct me if wrong but I don't think there's going to be any recapture here.27.5 to me implies 1250 property and if acquired after 75' means no additional depreciation to recapture.I think there would be unrecaptured 1250 in the amount of the depreciation taken previously, max 25% at ordinary rates.The total gain less unrecaptured 1250 I believe would be 1231 capital gains, not considering other factors like look back and netting rules.Also the land would be 1231 and would get capital gains treatment.And personally I would subtract selling costs as a capitalized selling cost.Amount RealizedLess: Adjusted BasisRealized Gain/LossLess: Selling ExpensesRecognized Gain 1001I could be wrong though so correct me if so.Article for those interested:Depreciation recapture in the partnership context (thetaxadviser.com)While Sec. 1250 only requires additional depreciation to be recaptured as ordinary income, Sec. 1(h)(1)(E) subjects unrecaptured Sec. 1250 gain to a maximum tax rate of 25%.

It's absolutely an important metric, but it's not the end all be all and it's not how you build wealth with real estate.

You can build relationships with wholesalers who know your market and can provide you with leads on "Off-market" deals or you can use an agent to find something on MLS for you.

We have a lot of experience remodeling homes and building new homes but we want to get rid of the middle man.

Learning about various investment approaches has been overwhelming and taking that initial step toward building passive income streams seems daunting.

I love this house and don’t want to lose it, I would like to add houses in the long term and build a portfolio. 

Looking to get more connected with the local investor community on my journey to develop, design, build and hold multifamily properties.