That being said, if in your position, with a friend that has money making them 1% or -% in the market, I would work out a simple deal where they could invest the capital and earn simple interest between 5-10% on a loan amortized over 30 years, with a balloon due in 5 or 10 years, or as far out as they will go.

So smaller capital players will be left with the less desirable more costly and probably more risky assets to clean up.

I am concerned because in case I want to sell the house at some point, I'd like to reduce my capital gains taxes as much as possible.

Once the National Banks in India have lent out their available capital to the local farmers, it’s all gone.

In particular, I'd like to buy some buy and hold rental properties with cashflow.I'm under the impression that doing this in California in general, and the Bay Area in particular, is difficult at best (and only a crazy person would try it in San Francisco).Just for background, I have about $80k in seed capital from buying and rehabbing a foreclosure here in Virginia.

If I can get a quick sale I'll avoid the capitals gain tax, but that may not happen.

If you have a lower income job find a way to leverage up to a higher paying job to get more capital faster.You could also go work for a flipper investor or buy and hold to learn the business.If you want to do it full time I would do that rather than running up 100k of debt you can't get rid of from college.All the best.

Will it then be considered a long-term capital gain?

It is the big capital expenditures that don't come up every year which eat up the cash flow.

So, just based on that sort of concept of capitalizing on every available asset, I am kicking around the idea of getting another rent out of the duplex and turning it into a triplex.