Some of the benefits of investing in real estate are given below:Investing in a tangible asset that has historically appreciated over timeSpread risk by diversifying your portfolioIt can be a source of passive income, with minimal effort through short and long-term rentalsReal estate investment properties have typically been resilient against inflationDepending on investment type, tax benefits can be availedThanks to these (and more) benefits, you’d think investing in real estate was a no-brainer, and in most instances, you’d be right!

If we pay the tax (approx $900k) we then have $2.65 mil.

@Mark Bascetta There are a number of competent tax professionals commenting on the forums here.

You must individually own a set percent of the new purchase equal or greater than your selling property in the same tax paying name as when you sold.

Or is the tax implications of higher valuations cancel the positive effect?

Experience is crucial for this as cutting corners can be costly later.

Currently, we are leasing the property, generating a net profit of $380 per month and living in Missouri.We are contemplating the decision to sell this property and potentially gain $239-278K payment to buy additional investment properties in Missouri given the rising rental rates in the area, we anticipate increasing our rent and potentially securing a net monthly profit of $780 (annual$9,360).While we acknowledge a monthly profit, our concern stems from the apprehension that the property might not fetch as high a price in the next five years or that our HOA fees and taxes could escalate.Given this situation, what course of action would you recommend?

Either option will allow you to short cut the process and make sure you're buying the right property with eyes wide open. 

Can anyone tell me what licenses I need and what taxes I'll need to pay?

I'm a new Tax liens, deeds investor in the DC, MD, VA areas.