Also, note that you are only taxed on gains if you just sell and do not do a 1031 exchange buying another property. At the macro level, this means (Current Sale Price) - (Original Purchase Price + Transaction Costs). You mentioned you expect to net about $30k, but if that is simply getting back equity you put in (such as on a down payment), you will not be taxed at all. Also, any improvements on the property can be added to your cost basis. It's very possible you will have zero taxes on the sale, depending on how much equity you put into the house vs. appreciation on the property. Finally, even if there are some taxable gains, they would be classified as long term gains that are taxed at a lower rate than income.
