After reading the book, "My First Fortune with Nothing Down," Larry Leverage, is driven to buy an investment property. He buys a run down duplex across the tracks for $135,000 ($10,000 down, a first mortgage loan for ${:ip-10000} from First National of Mud Lake and the balance on a note to the seller). He then spends $25,000 improving the property. He never lives in any part of the duplex. 3 years later he sells the duplex for $260,000 in cash. What is Larry's long term capital gain?