Quote from @Tracy Thielman: A lot of investors are trying to reposition properties or free up capital without selling.

We want to sell but the Capital gains are very substantial, my accountant didn't offer any other advice.

Then I find out a week ago they sold the property at a loss, ALL my capital is gone, and Ken McElroy goes on his merry way making youtube videos about how much money he is making. 

I sold the Class C with a capital loss and am selling the other Class C, both bought in 2023.

I signed on loans and put in capital.

Scope of improvements included:Full interior updates: new flooring, interior paint, lighting, granite countertops, and updated appliancesAddition of high-demand short-term rental amenities: game rooms, custom bunk beds, hot tubs, swimming pools, and putting greensProfessional interior design and full furnishing to optimize guest experience and nightly ratesThese improvements were executed with the objective of maximizing long-term performance, increasing appraised value, and creating differentiated offerings within the Hot Springs vacation rental market.Refinance & Financial PerformanceUpon completion of renovations, we partnered with a local commercial lender to refinance the portfolio.Combined appraised value (ARV): $2,601,000Approved loan amount: $2,200,000 (cash-out refinance)After retiring the hard money loan, the transaction resulted in a net cash return of $300,470.51, which represents $118,181.09 more than our original down payment—effectively removing all invested capital from the project.TimelineThe full cycle—from acquisition through renovation and refinance—was completed in 174 days.OutcomeThe result is a portfolio of three fully renovated, amenity-rich lakefront properties, each now positioned to perform as premium short-term rentals with strong long-term appreciation potential.

Some of the investors I work with rotate capital using short-term bridge loans or refinance strategies, but I’m always looking for new insights.

Some want to spread out capital gains.

What Chase said here is spot on, especially the part about flips being taxed as short-term capital gains (which really just means they’re taxed at your ordinary income rate) if you sell in under a year.

You learn very quickly that capital, skilled trades, and a real plan matter more than hype.We see the same thing in rentals.