Since the property is very new, there are probably very few repairs or capital expenditures.

Helloit is my understanding that traditionally when you sell your property you can use the 1031 exchange to defer the taxes on the capital gains from the sale. i know a little about that but i am interested to know if when you refinance and not sell the property to pull out equity from a property can u also use the 1031 for that. for example if i use the BRRRR strategy to buy a 4 plex for $300,000 i use a conventional loan and put down 20% of $60,000 making the loan amount for $240,000 and put in $40,000 into rehab the property so i have $100,000 in and the property then appraises at $400,000 so i refinance the property with 20% down of $80,000 in equity making it a loan amount of $320,000 out of that of course the original loan gets paid back of $240,000 leaving me with a check for $80,000. so does that $80,000 count as capital gains?

As many investors have echoed - NYC is a very expensive marketYou have the following options1) Investing in NYC - require large capital and a good choice if you are banking on appreciation in the future.2) Invest in upstate NY or CT/MA/PA/NJ3) Invest through a turnkey property4) Househack(may be difficult in NYC but doable in parts of NJHave you looked into attending any local real estate events in NYC? 

It tends to be the large multi national banks.Some folks here in London like Transfer Wise to send money more cheaply than banks.

Matthew Paul Ideally best to keep looking, assuming that you have the capital available to take on a second deal.You can always get the property under contract with a goal to close once you are done with your current rehab.

I personally don't flip and have no experience doing it, and it would take higher capital in SoCal/San Diego so you'd want to have a feel for what you are doing, but I certainly think flipping is the more profitable move with where we are in the market right now (super high prices).San Diego most definitely won't hit the 1% rule.

At his age, he’s probably not looking to 1031 exchange them into more property and wouldn’t want to deal with capital gains unless he needs to and doesn’t want to be soneone’s note holder on seller financing.Then again, maybe he just likes hording hard assets, like the rarely used car in the garage.

Once you have enough capital for DP on hard money loans this will be absolutely necessary if you want to make it to the big leagues.God bless.

@Nicholas Jestus Capital expenditures are not included in the Net Income.Your goal to nail down the true number is spot-on. 

And finally, by focusing on becoming the right person through habits, you will have had the opportunity to save your own money to invest, or better yet, become attractive enough of a person to attract capital from your future mentor and/or other partners.Best of luck in your future!