Good thread. Great reading.
I have not yet seen Capital Gains Tax mentioned.
For those who have had their rentals value increase nicely over time it seems like there are only 2 options for selling 1) take a big tax hit, or 2) re-invest in a similar property.
Anyone here dealt with that issue?
Long term capitol gains is 15% federal, plus state. So that's probably around 22% of your profits for most people. Two possible ways you might deal with capitol gains on properties.
1. move into the property for 24 months withing 5 years of selling it.
2. Setup a self directed IRA and LLC to buy the properties. When you sell money stays in the IRA, taxes get deferred until you pull the money out at retirement, hopefully at a lower rate.
I'm not a tax professional, so don't listen to my advice and talk to tax professional.