And does anyone know if there's any tax we would pay, since we're selling at a loss?

If I sell am I just paying full capital gains tax or does any type of exclusion or proration lower that?

We just started the process of creating an LLC so we can can track finances and submit for tax purposes.

I moved from NorCal to live and invest in Reno, NV because I still wanted to be close to the Bay Area but wanted to have much more favorable landlord/tenant laws, low property taxes (that don't reassess on the sale), consistent diversified job growth, and land constraints for higher appreciation. 

I am basing my calculations on the lower number to be conservative.

A few days ago, I bought a really cheap property in a semirural lower-middle class, but generally safe area.

Tax season is in full swing, and for most individual taxpayers, the looming deadline for filing and payment is Monday, April 18, 2022.

They do require that a permit be acquired (super easy) and hotel tax get paid (a little more complex but there are ways to make it easy), but otherwise there are no regulations to speak of.  

Taking away the garage from the existing tenants will lower the rents on those units.Currently they are:4 bed 2 bath rent = $2,000 3 bed 1.5 bath rent = $1,600I think the 4 bed 2 bath is the one with the partial conversion, and three units might look like:3 bed 1.5 bath = Rent $1,500 (no garage)1 bed 1 bath = Rent $1,1003 bed 1.5 bath with garage = $1,600Don’t be misled by the 6.6 cap rate in the listing, they are just using gross rents which is incorrect. 30% (25% expenses and 5% vacancy is standard in our market), and this is really a 4.7% cap rate.

This is roughly the message I send to my tenant 60 days before lease renewal:Dear tenant, Insert nice words....Your lease is expiring on [date]You have the following options:Renew your lease for 12 month at [rate] (If market rate is $100 higher I tend to increase something, if market rate is $200 higher I use (current rate + market rate)/2 for the new rate, if market rate is same or lower I would keep it the same rate)Move to a month-to-month lease at [rate x 1.25]Vacate from the premise on or before [lease end date]Please let me know by [deadline].