Account Closed They are also placement agents that can connect you with capital sources.

More technically what we do is this: The initial rent rate when we purchased / whatever the purchase price + and capital improvements needed (if any) to make it 'rent ready' = our "multiplier number" at time of purchase. 

Is it permissible to use the de minimis safe harbor election and expense the renovation costs that fall below $2,500 instead of capitalize them?

What is the best way for them to go about selling this property and will they have to pay capital gains tax?

In your case it appears that cost is lesser which means you'll be paying capital gains on at least $400k +/- in the future assuming values hold.

It will be interesting to see where our market goes, but I agree that it is a great time to capitalize on the appreciated values.

Repairs, capital and misc stuff is VERY lumpy. 

You're either going to incur credit card interest expense or a working capital bank line interest (and fees) for the use of less than $10k per year on average. 

If you switch to a long term investing and invest in actual assets, you may be better of with long term capital gains or even be able to use the 1031 exchange route to delay paying taxes on your property. 

Or will I get hit with capital gains?