So you sold it for $20k which would reduce the asset side of the balance sheet and if you exceeded your basis it would move to profit and loss statement.Then in future when you get payments it will all go the the profit and loss since you exceeded your basis

I was literally just writing this a week or so ago, a house that was $480k in April I just got under contract at $350k.

What is happening in LA’s residential multi family RE market right now.  

So one less item you would have to worry about in the future.

Sales price: $900,000Seller finance: $400,000 / 2 year ballon / 7% interest rate / interest only monthly payment: $2,333 / no pre-payment feeEstimated monthly income: $9,300 / Annual: $111,600Electric separated - water $450 per monthProperty taxes: $16,700 (with property value assessed)Property Insurance: $6,300Renovation Repairs $150,000I anticipate the Re-fi appraisal to come in at a conservative $1,150,000. 

Once upon move out, we had tenants claim that the plumber that had only months before replaced the wax ring and re-set the toilet left it all loose and wobbly with a broken seat and they refused to take responsibility for it's condition.  

My hunch is that if the property you're looking at is a good investment the benefits of buying and owning the property would likely outweigh whatever capital gains tax you incur when selling those shares.If you want to be extra sure, talk to a RE friendly CPA - BP has a great directory

In addition, what will happen to the tax write off since both properties are paid off? 

I live in Chicago and I'm looking to re-invest/wholesale in the city

I spoke to 3 PM companies, 2 of them being RE brokers and property managers.