Let's break it down with precision:The "Pain" (At First Glance):Your $2.8M sale splits out as:Building (§1250): $2.3MPersonal Property (§1245): $500KOriginal Basis Allocation:Building: $1.6M (depreciated over 27.5 years)Personal Property: $400K (fully depreciated)Building Depreciation:Annual: $1.6M ÷ 27.5 = $58,182Total over 10 years: $581,820Gain Breakdown:Building (§1250):Sale Price: $2,300,000Original Basis: $1,600,000Less Depreciation: ($581,820)Adjusted Basis: $1,018,180Total Gain: $1,281,820Unrecaptured §1250: $581,820 (25% max rate)Capital Gain: $700,000 (20% max rate)Personal Property (§1245):Sale Price: $500,000Adjusted Basis: $0Ordinary Income: $500,000The Strategic Play:Remember those suspended passive losses you couldn't use?

@Collin Hays I really appreciate your insight based on your personal experience in the Smokies.

I personally never look at BP on my phone or the app on my phone but i just checked it and its still there it brings up the forum threads maybe BC I already had it ? 

And the fact that you have a contractor you know personally is name of the game! 

This is my personal opinion, which probably won't be popular.If you are worried about the cost of hiring an attorney to create a proper operating agreement for your LLC, you probably don't need an LLC, and if you choose to use an online site to create an LLC, you probably get the protection you paid for.

My number one piece of advice is finding a group that you can attend online or in person to keep you motivated and accountable to your goals. 

If you are a person who has a full time job, or runs other companies, it is my professional opinion that you will be better served having the GC handle everything and report to you on your schedule.Once you decided to run the operation yourself, you are now employed by the development.

Hey BP,Looking for some great websites to use to gather information on different markets, especially OOS investing...One of my personal favorites is "City-data.com", which was also suggested to me by a fellow BP investor!

Who gets blamed for and/or has to handle the following unique to nonfamily roommates:1) Missing personal possessions?

I had belatedly realized that FHA goes off personal credit and therefore I couldn't use the LLC for it.