Mohacsy's Safe Portfolio Member Forum

[santafe2]

Another strategy that works well for mom-n-pop landlords/builders like us, is to buy single family homes in good neighborhoods and hold them until they've appreciated significantly. Then make the house your family home for two years and sell. The first $500,000 in profit from your basis carries zero capital gains tax. In most non-coastal locations that covers all profit and you can do this once every two years.

You do have to keep good records of expenses but landlords should be doing that anyway.

Your point regarding location is important. No one should be chasing properties in locations they don't understand completely and it's always good to have all of your properties within a few miles of each other or you'll spend more time driving than taking care of small repairs.