Even if the intent is to convert this into a rental upon grandma's passing, you still would like the step-up in basis unless you plan of lifetime of 1031 / 721 exchanges.

Additionally, there's a fixed self-employment tax.Income Tax: 22% * $70K = $15.4KSelf-Employment Tax: 15.3% * $20K = $3.06KTotal Tax Due: $18.46KRemember to account for any state taxes as well.To defer taxes entirely, you could utilize a 1031 exchange, which allows you to reinvest the proceeds from the sale into a similar investment property, thus deferring the tax payment until a later date.Example #2: Long-Term Capital GainsNow, consider a scenario where you hold onto the property for over a year.Project Details:Property Cost: $70KRenovation Costs: $50KResale Price: $200KProfit: $80K ($200K – $50K – $70K)Since self-employment tax doesn't apply, you only need to calculate the long-term capital gains tax.

Hey everyone - been a long term rental investor since 2005 and now looking to diversify in STRs (aiming for the Smokies to start) later this Summer through a 1031 exchange.  

I don’t see the sense in paying off my own house at presumably low interest rates, and exchanging that for a higher rate, variable interest line…unless I have a really good plan for not losing my house.  

And maybe buy 2 or 3 properties with each 1031 exchange if you can find some they cash flow.

No, if you’re an LP in a real estate fund or shareholder in a publicly traded REIT, you won’t qualify for a 1031 exchange.

Now, very profitable with $4,000 rents and low monthly payments.Passively considering a sale to do another 1031 exchange.

Are you planning to do a 1031 exchange or a trust deed to avoid/ minimize the property gain tax?

In exchange, I’d be able to be sort of an intern or someone to help with boots on the ground here in AZ.  

Security deposit amountYou can find plenty of examples by searching for "tenant estoppel certificate doc" or exchanging "doc" with "pdf" for more options.Here is an example and explanation: Sample EstoppelSome have a lot of legal jargon but this document does not need to be so detailed.