Like drugs.......just say no.

We also have a building across the way filled with the worst kind of tenant offenders - parolees, ex-cons, drug users, layabouts and bums, you name it.

hello,my name is Ron.May be I have what you are looking for.I have 1 acre of commercial land for sale.It is located in Alabama,town of Mc Intosh.It is probably the most prime location there,has 200 ft of hwy frontage.This is a very hot area now because of the new Still Mill comming just 8 miles away.plant name is Thussen Krupp,it is the biggest progect in US in last decade,you can find more info on internet about this.This area is fixing to explode.Pricing now is still reasonable,many investors already in the area looking for land,but most of the land for sale are big parsels.I think for somebody to hold this plot for two years is the way to go,probably by that time prices will go way up.they are building brand new drug store right across the street.

But I take your point.I'm guessing that the townhome qualifies for the "2 out of 5 year" rule for preferential tax treatment which is one more reason to sell it now.I don't like being a long distance landlord, I sold all of my rentals before I moved 200 miles, so I wouldn't keep it unless you KNOW you might move back and re-occupy it.Your math analysis is correct.

Many people WILL pay regular income taxes on the net income you earn, but others will receive passive income treatment.

You can get capital gains tax treatment if you sell it after living in the house for 2 out of 5 years (READ: KEEP AN EXTRA $1000+ FOR EVERY $10,000 IN PROFIT).Make it nice (visit your neighbors that have nice looking houses), not over the top, and take care of the house while you're living in it.

I tried hard to buy in Biloxi/Gulfport for the go zone tax treatment.

My wife thought I was bad.Since you're not taking advantage of the favorable tax treatment for "flipping" your primary residence you'r paying a bit too much in taxes.

There is a drug problem in the city and that will always be an issue, just like any other city.  

William,This transaction will not qualify for 1031 exchange treatment.