By talking more to the police, we found out that the main tenant had a long history of inviting guests in exchange for help around the house and that those relations would always turn tumultuous and that the police visited the house several times each quarter over civil complaints, suspicious activity, noise, drug related activity, and a bunch of other civil nuisance type of calls.

We close July 9 on the duplex, and looking to roll the 1031 exchange ... 

You start with the "worst" property and sell it and 1031 into something that makes more income.

We purchased the home on 7/21/2022 for $370,000, invested $20,000 in renovations, and sold it for $435,000 on 10/31/2022.

The property itself is worth about 130K -140K currently so I will be 1031 exchanging next year when rates come down to a newer property.

It's turned out to be quite a good deal for us both, as they are paying all utilities, some maintenance, and have even contributed to some cap ex in exchange for a multi-year lease. 

Possible best course is to 1031 exchange into better areas in milwauke or somewhere else.the other option is to hold on to it, wait for leases to be up.

If residential isn’t for you, you’ll be able to 1031 into your first commercial deal.

If the goal is increased equity and wealth then upgrade properties judiciously and increase rents or trade up using real estate exchanges.  

Using the BRRRR method and 1031 tax deferment strategies are a great way to build your portfolio.