You will still get hit with a tax bill on profits though.Bottom line, while we all hate taxes and would much rather keep 100% of our profits, your option of waiting to save your W-2 income (which is also taxed of course) to get your next acquisition for hold as opposed to flipping a property with a partner to make money which will be taxed as well still leaves you with a net gain for future investments.

The new rate is always higher than the new rate given to the tenant because, we increase 3-8% not to exceed market rate and most of the time market rate has gone up more than 3-8% but we don't raise more than 8% because a turn over costs more than what the gain would be.

Sold the land, made lots of gains!

Just keep in mind that you don’t pay tax on your $170k gain if you sell now or during the first 3 years of renting (must have lived at least 2 years of the last 5 years in the house to qualify for tax exemption).If you decide to sell after renting it for more than 3 years then you suddenly have to pay capital gains tax on $170,000 or maybe even more.

Once they gain comfort and experience with the process they buy more (if that's their goal). 

Although my properties have doubled, tripled and some even 4X my buy price, I haven't realized the gain because I haven't sold!  

Have any large gains to generate in the same year to offset it?

@Stephanie WellsUnless it’s adding parking spots I wouldn’t say it would hold much weight on the appraisal. $6k-$8k is a lot to spend compared to the return you’ll get on adding value to the property.

The vast majority of people start local to gain experience and limit the downside risk. 

It can be used to amplify gains and increase cash flow/net worth, but if used haphazardly, the results can be disastrous.