This usually happens when a contractor is planning to run off with a huge portion of money before even completing the work.

The full 1031 exchange must be completed within 180 days, or the tax deferral is disallowed.Property Use Rules:To qualify for a 1031 exchange:The property sold must have been used for investment or business purposes.The new property must also be held for investment, so if you plan to house hack, you must allocate only the rental portion for 1031 treatment.Example: If you live in one half and rent the other, only 50% of the new property qualifies for 1031.Taxes Avoided with 1031:If executed properly, the following taxes are deferred:Federal long-term capital gains tax (15–20%)Depreciation recapture tax (25%)NIIT (Net Investment Income Tax) if applicable (3.8%)State capital gains tax (in Oregon, can be up to 9.9%)But if you fail the timing rules, you’ll owe all of the above taxes in the year of sale which could be well over $100K depending on your basis and depreciation history.Planning Tips:Work with a Qualified Intermediary (QI) before selling, you cannot take possession of funds.Consider renting out the entire replacement property for at least one year before occupying any part.

Hi @Ramya ManchuFannie Mae/Freddie Mac guidelines cap total interested-party contributions (IPCs) — like seller, builder, or lender incentives — at 2% of the purchase price for investment properties, regardless of down payment size.

Same size house, sold comps within about a 3 square mile area, sold within the last few years. 

In reality, yes interest rates play a minor role, however the cost of the property far exceeds what banks will lend as a portion of income. 

Some questions I asked: Do they clean STRs, how many team members do they have, How many team members will they send to my size house, how long do they think it will take, do they provide linens or use my linens, do they do laundry onsite or take it with them, will they use Turno (since I prefer it), do they take photos (my Turno requires it), do they provide any supplies (some supply things like TP, paper towel roll, garbage sacks, and dishwasher tabs), will I generally have the same cleaner or will they rotate, do they accept supply shipments for the supplies I order, is there a follow up quality inspection or do I need to provide it, do they support short notice cleanings, what do they charge for my size house and bedrooms?

It really depends on each home (size, type, bedrooms, how new/nice it is), type of acuity/care provided, and each location.

This kind of proactive planning becomes increasingly valuable as your portfolio grows in size and complexity.Asset protection, on the other hand, is about safeguarding everything you’re working hard to build.

Size, customer base, and neighboring businesses.  

The strategies that I think would be reasonable as a newbie are long term rentals of small to medium sized SFH that don't need much work or turnkeys.