I attribute this to bad information on the internet and “Gurus” who sell the novice investor on the notion anyone can scale to a  large portfolio quickly.

We're thrilled to have someone like you, who has so much experience in real estate, join our community.With over 30 years of buying, selling, and managing properties, you have a lot of valuable knowledge to share.

If I sold the unit today, I will walk away with $100K in profit after agent commission etc.Given I cannot offset rental losses ($26K) against W2 (not a RE professional), any advice re: thoughts below:1) sell the rental in the next 3 years (under the 5 year and 2 as a primary occupant) to avoid Capital Gain.

If it's an (A) location you do not need 1.5 years especially to land a franchisee restaurant tenant.When I look at a property I look at the current value, the dark value, and the re-potential value.Lot of commercial developers sell off marginal tenants at market rents.Example me buying a Wal-mart with 10 plus years left at a 7 cap is way different than trampoline or workout place at a 9 cap.On its face the 9 cap may be appealing but then you find out for that box size the crap tenant is paying 1 dollar below what national tenants pay.

MAYBE you could find a balance sheet lender who doesn't sell the notes that would do it.

This is usually Single Family or 2-4 unit BuildingsTo these sellers, I will always say: keep at least one unit vacant before selling if you can.Most Buyers are looking for a place to live, not an investment property - especially if you are selling a single family home.

If so, what is the cadence for follow-up with the sellers that tell you they do not want to sell right now?

They are as conservative as they come, yet they won't raise the rent because they feel sorry for the people that are in the units, and one of them (the husband) is bitter now and wants to sell all the rentals because they aren't making any money and costs are getting prohibitive.

What happens if you undertake the renovation and management and then the seller decides not to sell the building even if there is a contract?

If other fourplexes in the area are selling for more than $650k, then you have built in margin.