I have some client from NYC that flip there, I have learned that upper NY is much easier and doesn't require so much capital.

Unless you capitalize on the equity, it's not really doing any good sitting there locked up in a property.

Then long term capital gains on the rest of the gain.Now, if you're thinking of buying in Boulder, then, yes, you're going to have losses.

The upside of the property management salary is that I already have the financing and capital lined up to continue growing over the next 18 months even if i quit the day job.

You will have insurance, property management, maintenance, capital (e.g., roofs and boilers and other big items), vacancy, legal costs, CPA costs (you'll have to file taxes in the US and in NY.)What's rental demand like in that area?

You stand to make a nice profit and can roll that cash into something else and capitalize on the market thats hot or up and coming.As Joel said sell at the peak, I wonder how many people would do things differently if they knew than what they know now??

Now that I am investing for less risk, less aggravation, and increased capital gain potential, I use the 1% rule for Class A residential and the 1.5% rule for Class B.

This includes vacancy, taxes, insurance, maintenance, management, and your capital expenses fund that you should build up for your once every 5-10 year things.

You have $16,500 in capital in and $27k in differed equity.

So the recap here is you have the capital and more of the admin/management and he is more on the ground and construction.