Maybe that is why the old owner didn't pay their taxes?

Hi All, any input on renovating a house and possible tax exemptions under an LLC?

If you decide to sell and find an investment property with a greater cash flow potential.A 1031 exchange would allow you to indefinitely all of the tax and use it to your advantage to reinvest into larger nicer property/properties.

When you live in that duplex for 2 years and then sell you'll be able to take 50% of the profit tax free (the allocation for the side you lived in). 

@Anita Z.I recommend finding an accountant who specializes in real estate taxation, tax planning and financial planning.

Is it turn-key, or deferred capex?

And she’s the one that released the latest tax rates and year to year comparisons in September of 2024.

(As AZ and your current state will fight over who gets to tax your gains with the federal government.)I have to throw most of the shade on your horrible tax guy/cpa who didn’t tell you renting it out was a $50-$100k mistake. 

These are high quality properties that require very little or no deferred maintenance for the Buyers.  

Finally, even as the landlords cash flow increases, depreciation should keep a major portion tax deferred.