Overview:Address: 3960 Pleasant Shade Dr, Atlanta GA 30340 (Have owned for since Nov 2016 and depreciating)Details: 3 bed 2.5 bath 1,847 square feet (None of the photos online are current)Principal Owed: $232,000Mortgage Rate: 3.375%Monthly Payment: $2,010 + $250 for landscaping and pest controlCurrent Rent $2,450 a monthProjected New Rent: $2,750-$3,000 a monthPotential sales price $450-500k. 

@John Michael RobersonI agree with @Kory Reynolds: tax-wise, it is a workable plan, as long as you are hands-off, which in technical terms is known as failing material participation.I would caution however against focusing strictly on taxes.

Its unfortunate that your closing costs increased by $3,546 in order to fund your tax and insurance escrow accounts.

**Financing Risks:** High-interest rates on pre-construction loans can impact your overall return, especially with rising cost of capital.

Would the property taxes on this property be taxed at the residential rate?

please suggest to avoid gain tax and avoid being labeled as dealer by IRS?

If you're hoping to wait until interest rates come down, not only do we have no clue if or when that will happen, but when it does you may see prices go up as buyers are able to get larger loans.

Still analyzing every day but having trouble finding deals that cash flow after rehab, especially with the property taxes.

Do we have to show proof to the buyer that he has settled the capital gains tax and/or provide the IRS certificate? 

Here is a historical chart comparing the two:The reality is that a drop in interest rates virtually never make prices go down, they are inversely related.