I want to ask your opinion on which strategy to take to increase profitability I’m thinking if I should sell my CA rental now before I have to pay capital gain tax Cuz I’ve only rented out 2.5 yrsStill within that 5 yrs time, that was my prior residence...next thing is...A) hold on to the $300k cash and wait out a yr, but when market cool down a bitB) buy now in Austin and Orlando C) invest in vanguard funds If I sell, I’m hoping to buy 2 newer properties in the 1990s-2000 built My current rental is 1950s built...old plumbing, and outdated exterior...I feel major maintenance is bound to happen in next 5 years.

The latest one I obtained was completed in 2018 (a full gut and rehab) which was roughly 1050 sqft and ended up costing me about 75k including everything.My question is what would costs now be for a full rehab on a house 800-1000 sqft including new hvac, plumbing, electrical and siding etc.

Note: we had completed a full gut rehab of our house with all new plumbing, electrical, HVAC, second floor addition, etc.  

If you buy 20 homes that are 30-70 years old and in a treed area then plumbing will likely be your biggest cash sinker. 

These deals are attractive to investors for the following reasons :Contracts to build 3-4 bedrooms are available under $300kRental Comps from $1600-$2200 / monthWarranties:10 Year structural 2 years electrical, plumbing and HVAC5 year warranty on the hot water heaterTight market with low inventory.

There is plenty of money to be made doing the right thing.I had investor client the other day ask me if he should pull permits on big rehab project including big plumbing, entire electric rewire, structural changes etc.   

All the old cabinets, vanities, fixtures, flooring, polybutylene (quest) plumbing and appliances have been removed. 

The project will include rough in plumbing and electrical and an upgraded electrical panel.Thanks in advance for the support!

In seller disclosure, seller claimed that the room addition did NOT require permits because the work done was “cosmetic”, even though there were structural renovations, plumbing, electrical, etc that the seller admitted to overseeing.

( :In my experience, there are three equally important things we like to look at before taking the plunge on a deal:Fixed ExpensesVariable ExpensesAnd Capex (Capital Expenditures)Fixed expenses, despite their name, are not always “fixed” but they are regular expenses that you can count on each month, things like utilities, mortgage costs, property taxes, garbage, insurance, homeowners fees, special assessments, and property management fees (which as you mentioned, you don’t need to worry about)- should you choose to go that route.Variable expenses include things like capital expenditures- like wiring/plumbing upgrades, new appliances, new driveways and roofs, etc.