With the 40,000 profit is there anything I can do to defer my tax?

That’s less than 4% before insurance, taxes, repairs, vacancy and so on.

Thanks Stuart.I don't think a "thesis" is necessary for real estate investing.Your mixing "thesis" with speculation and prediction IMO$1m in cash is retirement for someone that knows what they are doing in "low barrier" markets like you mention.Same can't be said for higher entry markets.Those that don't know real estate will loose no matter where or how they invest.Personally, I don't care about appreciation as I don't get out of bed unless I can net cashflow 20% net on a deal.For example, just bought a 6 unit in a B class area for $160,000.Currently occupied and renting for $3,000pm.Once minor rehab of $50,000 is completed, rents will be $4,500.I have an offer to sell as is for $250,000.ARV is $350,000.When interest rates go down, value will increase even further due to commercial lending being easier.No need for appreciation on such deals.I'll take them all day long over any appreciation potential.Again, just my opinion and each to their own.

That is of course once you felt you've learned what you can, done your due diligence on the property and area, and fell comfortable going in.

You're also getting tax benefits from the property.

Hello all, I acquired a property remotely thru the online tax lien sale in Lake county Gary IN last spring and successfully redeemed it. 

Write it down and call it "X"Step 2:Find the number of people that are CONSISTENTLY making deals due to said free information on Youtube.

Also don't forget to look into your tax treatment for signage.

Check with a tax professional, but if you have lived in the home for 2 of the previous 5 years, you may not owe any capital gains tax, and so a 1031 is irrelevant.If you didn't you may want to wait.If you do go ahead, read about 'mortgage boot'.

--> Automates a lot of your expense tracking --> Much cheaper than most softwares/fancy sheets --> Will probably save you a couple of thousand extra on your taxes if you follow all the recommendations.