You should learn about the different advantages for real estate investing (loan paydown, appreciation, tax benefits, cash flow).

Jim Gaines said, “Home sales activity remained strong for the second quarter of 2018.

A clearer understanding of what you expect to gain from RE will help us give you advice. 

My friends who stayed put enjoyed the crazy RE gains.

It's likely that the cost may outweigh the benefits with respect to a cost segregation on a property as small as 4-units but maybe not - it's certainly still an option.To answer your question, yes, you can claim depreciation on the 3 rental units even if you used an FHA loan to purchase the 4-plex.That's the beauty of house hacking and depreciation :)

Thus the terms “marketable title” and “insurable title” mean that the property can be sold and mortgaged free of “clouds” or claims because a title insurance company is willing to insure the title in the name of the new owner and/or for the benefit of a mortgage holder.

My question is:  When we sell the house, are we paying capital gains tax on anything we get over $66,500 or over our loan of $134,000?

And of course done correctly you get stepped up basis for tax purposes then you can sell and not pay huge gains.. although you will have to talk to CPA about recapture.. or you do what a lot of folks do and 1031.. or you just live with the comfort of knowing you have millions upon millions of free and clear real estate. your grand dad is one smart guy .. 

Love this awesome community and can’t wait to start gaining some credibility as investors!

I get the benefit for me, but our market is extremely good now and rents are sky rocketing and vacancies are extremely low, so if I were to try to do a master lease for cash flow, why would a property owner do this?