House-hacking

[Jacob Casarez]

I just turned 23 and I am 15 months into my first house hack/live and flip deal. My brother and I owner occupy the property and rent out 3 rooms. With just over 40k equity into the deal it's obvious that we want to cash out next May to defer capital gains when our 2 year residence is up. Unfortunately it sounds like I will get hit with depreciation cost from taxes when we cash out -- is there a way to defer this? Can you 1031 exchange a house hack? I need some off the record advice. I am exploring options and like to move quickly. We want to make enough cashflow to eventually leave our 9-5 jobs. Please help, BP! Thanks