I would also be at a shortage of capital at the moment :lol:The area we live at (DC Metro), residential real estate just exploded in the past 6 years.

I've been reading posts from people who are looking to do business with others, yet their use of the basic tenets of punctuation and capitalization are non-existent.

Any additional gain would be subject to capital gains tax, long term capital gains if you held 10 years.Note that there is another depreciation recapture tax that applied to accelerated vs. straight line depreciation.

Start with this one to get some capital going.

The heirs will get a "step up" in basis which can be very important in avoiding LT capital gains.What I said was it's not a good idea to leave AN UNDIVIDED interest to the heirs!

I call it the Cost of Capital.

You would owe capital gains tax on that.One of the items you're missing is depreciation.

. $70 monthly (IO) so as long as you can get $70 more for the larger of the two, you will be fine.Also, the larger house needs less repairs according to your figures and is newer (better resale value down the road & possible less capital expenses).In the end, it is a personal decision you must decide and above are only my observations.

Reason 2 is to build capital to purchase multi-families, do some seller financing, and finally to possibly get involved in the note business.

I'm a newbie in the Los Angeles area looking to build capital by wholesaling and assigning property to more experienced Investors, if anyone can shed some light along the way I'd most definately be open to having a mentor whom I can refer property to and we can both make some good $$>.