@Josue Godoy This is a loaded question- If you are planning on being very specialized in a single area it would make sense to go one way or another...this is an oversimplification, but the point is to be diverse enough that you can process any type of deal...for example, really focus on an area you like well...like flipping, but learn how to hold properties as well, and whatever else you want to learn...as you grow, you'll be receiving many leads from different sources...and the point of this rationale is that you should have enough tools in your toolbelt to put your deals in a "best use" funnel...then profit on the other side.I'm only adopting this position because you are so young and have so much time in the industry to elect to pursue and specialize in one strategy.The simple answer is related to your goals...assuming you want passive income to replace your W2 means that you will need to buy and hold properties...similarly, if you start flipping properties, you're creating another job for yourself and creating a liability.

It made it easier for us to evict the bad tenants without having to find replacement tenants for the entire apartment AND you can increase profits through "by the bedroom" rent.

You should use some of the profits to get some good rentals.

This isn't in the world of GSE subsidies, no secondary market sale post-close, so all the profit needs to come from you (or, really, your tenants...) or no one will do it.

Do I just need to pay taxes on the $5K or I have to pay taxes on the whole profit gain?

I'd prefer a property that only needs cosmetic work and is located near a good part of town as well as an "attraction"- ie baseball stadium, hospital, concert venue- so I'll have the option to Air Bnb if I choose to. 2) Generally, which city has a higher profit on rentals?

But when a refi happens right before a sale and 1031 the IRS has had a tendency to view that as a way of taking profit and subsequently disallowed the exchange if it was audited. 

Within 7-10 years from the time of purchase your rents should go up and so your NOI, so you will have some built in capital gain which MAY allow you to sell at the same cap-prate say 5%-6% and still make a profit. 

If they don't make profits over the long run, they won't last long.I suggest that use this as an opportunity to learn.

Legal residents of other states are not required tofile a Georgia tax return if their only activity for financialgain or profit in Georgia consists of performing servicesfor an employer as an employee where the wages forsuch services does not exceed the lesser of five percentof the income received from performing services in allplaces during the taxable year or $5,000.3.