Hi, I was recently reached out by someone who wants to rent my 3 br 1.5 bath and use it as a assisted living facility for adults.

This money can be reinvested in opportunity zones or used to enhance your current properties.Maximize the 10-Year Exclusion: Opportunity Zones regulations exclude capital gains generated by your investment from any taxation.

It looks to be a true 50/50 split based on square footage, so eventually when you go to sell you will be taking 1/2 of the property and applying the federal tax exclusion under Section 121 and the other half will be treated as a capital asset subject to capital gains.

I also require a picture ID of all adults prior to check in information being sent…..the combination of the above with no same-day bookings has pretty much eliminated guests that may have been up to something.

You may want to mention that you will not permit any adult content or advertisements for a competitor (we will be operating our business next door).

Oopsies in retirement are harder to recover from.One other option (either with 1031 sales or not) would be to sell your primary and take that exclusion tax-free. 

Can mess with your 121 tax exclusion at sale.I never held any residential RE in LLCs, just commercial.

She was only at the meeting because she was offering an exclusive business opportunity with unlimited potential, and asked if she could buy breakfast and explain the “opportunity”.

Oh, and if you're living in the duplex yourself there are additional considerations like 121 exclusion and home-office expenses and depreciation. 

@Alex @Alex Clark - I invest exclusively out of state and did that from my very first deal.