With a long term capital gains rate savings, plus some decent deductions, I might still do OK.

I am going to continue to read and learn and hopefully gain some good feedback and advise from those of you here!!

Your $150,000 cash down has given you in 30 years –$3,365,000 (4% annual appreciation)$1,500,000 (2.34% annual “appreciation OR principal paid down on loan, however you want to look at it)$508,000 (after-tax cash flow invested annually into 8% annual yield account, whatever that is)$410,000 (increase in rents minus increase in variable operating costs invested annually into 8% annual yield account, whatever that is)Total gain - $5,783,000 or 12.9% compounded annual yield on the $150,000 investment.

Two areas you need to factor in that have not been mentioned are:- Lending realities (70-75 ARV loans are available, but 65 ARV is offered in more abundance)- Exit Strategy (you need to back out liquidation costs [seller commissions] and capital gains from your gross ROI calculations).Regards,Scott Miller

The more valuable our information, service, or product, the more we get paid.I am perfectly okay with people helping other people for money.

I am looking to start investing in real estate in the next couple of years and see where i can go with it. for now i am just trying to gain any first hand investing experience i can get.

I remenber reading in the WSJ recently that if you bought a house in '69 for $30,000 and sold it today for $300,000 you would have gained nothing when adjusted for inflation.

Is there anything we can do with the proceeds we receive from the sale to defer the capital gains taxes OTHER than a 1031 Exchange??

I would also warn against a 1031 exchange and was wondering, why not live in one unit while you rent out the other units after conversion, then once 2 years is up, sell the unit you have been living in tax free up to 250k if you're single and then either move to the other units or even if you sell them at least you can tax advantage of capital gains since you've held them for more than 1 year.

Well, the interest is nice, and some valuable info is in this forum.