You need to reinvest the total proceeds received from the sale (including debt paydown) in order to defer all capital gains.

Gain knowledge in all aspects evaluating and maintaining property - structural, electric, plumbing, etc.

Here are the details upfront:Purchase price-$135kDown payment-25% ($33,750)Target ARV-$170kWhat is the best, most cost effective way to pull out this equity gain and use it for a longer term, mortgage-like loan that I will use to purchase another property?

This is a subject I didnt really paid attention to at first and I would like to educate myself on it. 

The thing is you have to stay on top of things if you're going to manage the tenants yourself as I find section 8 tenants need a little more attention but nothing extraordinary.

That's interesting I will run that by my CPA  .. loaning money is ordinary income the tax deferment at least what I read is for dividends and cap gains.. did not see anything about getting out of ordinary income or self employement tax.. 

The big difference would be, with $20MM of cash in hand you will have people fighting for your attention and you will get more deals sent your way quicker than if everyone thought you were a tire-kicker.

Thanks for sharing your house hack experience, I did it whilst living in the UK, I believe we should all do it at least once, to gain a bit more experience of land lording and managing tenants.Good luck!

@Anthony Dooley the problem is not getting people to say yes the problem is getting someone to say yes who wants out of real estate and are willing to accept a large capital gains tax and depreciation recapture from prior exchanges on a 10+ million dollar property.

It has also increased in value by 20%; therefore cost basis has reduced and capital gains exist.I clearly understand I need to pay transfer tax.