Makes complete sense to purchase a property that breaks even or loses money.

@David LewisRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

You can indefinitely defer the tax and use it to purchase nicer property/properties, as well as not have to recapture any depreciation.

So it was 153k for the purchase and 40k for the rehab, I had to come up with the rest. 

I know that something has to change and I want to explore purchasing real estate.

Purchased a little too high at the buy (I knew it at the time too), does a little better than breaking even on cashflow, and took too long to rehab.

In order to defer all tax you must purchase at least as much real estate as you sold. 

First time investor, hoping to obtain my first duplex soon, and this family land purchase is on the horizon as well.

Purchase price: $500,000 Cash invested: $100,000 AirBNB in West Sacramento

I would be thinking about future loans as I plan to do purchase another property soon after.