DW and I decided to try out being land lords and bought a ~1400 3bd/2.5 bath townhouse down the street from us (North San Diego) back in 2013. It's in a new complex (our unit was built in 2011) and it hasn't been much trouble, but we are tempted to cash out if it reaches a target price as it's been appreciating nicely. Has anyone done so and could you share your story, explaining what the tax consequences are and what we should look out for? I've tried to read up on it and the capital gains, depreciation claw back, yadda yadda has me confused. FWIW, we bought it for $345k, put $100k down, make $2300 in rent so it's officially in the black but I'd call break even cash flow since there is always something (two weeks without renters, broken washing machine, etc.). Right now comps are selling for $460k, which isn't enough to make it worth it in our eyes, but we're monitoring prices and could see it reaching a target we'd consider by this time next year. I understand we may get treated differently due to high income as well - we make ~$300-310k combined top line, I think AGI is still $250k+, I understand at $400k income something happens? Sorry if this is a beat to death subject, this is a new world to me, happy to read an old thread.