Debt is tax free, sale proceeds are not.

It’s a great way to upgrade your portfolio without taking a tax hit.

There was also a tax advantage in that I would deduct the HELOC expenses. 

As a CPA specializing in real estate taxes, I often get asked about the basics.

In terms of new construction, a couple things to be aware of in San Luis Obispo County are water shortage issues and development fees/taxes which can significantly increase the building costs.SLO city and the neighboring cities are particularly diligent on their water usage, as most of the county's water supply comes from three surface water reservoirs and a groundwater basin.

The city's diverse economy, favorable tax environment, and high quality of life attract a steady stream of new residents, ensuring robust rental income and long-term growth potential.

Depending on where this is located ( I assume in the burbs or even the hood. 

Special rent taxes.

That depends on you, rates historically have always been in an up and down wheel and very soon rates will be on the down.

This will greatly depend on your end goal for investing Kevin.