I think holding on to it for at least another year two to see if the market adjusts makes sense.

,When you 1031, you carry your adjusted tax basis from the old into the new. 

I personally believe  the commercial space might be in for a bit of a shock in 5-7 years when all those low rate adjustable loans reset; especially some of the weaker buys leveraged to 80% or more.

Each asset is looked at individually, costs are adjusted and then rectified with the total property cost.

And then that’s when you can make adjustments or changes to the strategy

And you read the data, and effect price adjustment every 7-days. 

They simply net together.Whether the 20,000 loss is deductible depends on your income, and I can only assume that with a jumbo loan on your primary residence, you earn more than 150,000 modified adjusted gross income.

We’re seeing a big shift on MLS-listed properties now compared to the peak a few years ago: much higher DOM for certain properties, much higher inventory in certain market segments, more price adjustments etc. lot of deals on the MLS these days because buyers aren’t active at all, while some sellers still think it’s 2022, they’re getting greedy and listing way too high then  don’t adjust quickly enough when they have zero showings or offers, and let the listing get stale, then eventually cave when all they’ve got in hand is a blood-sucking offer from someone like us ;).

Westchester 2-4 unit properties listed from January - May:2022: 2332023: 177 (Lower inventory likely due to the market adjusting to 6+% interest rates)2024: 274Lastly, since you're looking to acquire something with more favorable #s, you may want to begin your search with the "ugly" deals that have been on the market longer.

To create an effective and lucrative rental property portfolio, start with a strong foundation, maintain discipline, and adjust to shifting market conditions.Good luck!