With a stylish updated kitchen, comfortable living area, tranquil master suite, 2nd living room with a bar, and a bonus room on the 3rd floor, it's perfect for unwinding or entertaining.

With a stylish updated kitchen, comfortable living area, tranquil master suite, 2nd living room with a bar, and a bonus room on the 3rd floor, it's perfect for unwinding or entertaining.

The home features a great bonus room on the 3rd floor great for an office/ media room with access to the rooftop balcony.

If the tenants are ultimately paying the late fees are just bonus income for you.

@Donald Howaniec another alternative to a 1031 is to invest in a syndication (or fund) where bonus depreciation is being taken on assets as they are acquired.

The home features a great bonus room on the 3rd floor great for an office/ media room with access to the rooftop balcony.

I think $500 is generous considering the wear-and-tear and issues you are facing.

Under stair storage is a bonus.

I had significant PAL in the first couple years due to bonus depreciation and other factors, and I expect positive passive income moving forward which I'd like to continue offsetting as long as possible. 

Unless you are using commission, bonus, or have variable income to qualify, you should not need to wait 2 years for conventional financing, which will have lower rates and less down payment required than DSCR (assuming you plan to house hack).