.$2,000,000 is going to improvements to the riverfront park adding playgrounds and splash pads.Since 2022 a feasibility study has been going on for a regional sports complex boasting 16 soccer/football fields, 8 baseball diamonds, 50 meter indoor pool, gym, track, and waterpark.There are several more project revamping old warehouse building turning them into trendy new dining and retail spaces.

Strategies like REPS and short term rental loop hole can be complex and expensive to get wrong from a time and money perspective. 

You can check the zoning but if it's a commercial building that's an apartment complex or old hotel turned residential, you can do whatever and the city can't make you come under the permits they require for non-commercial STR properties.

The surviving spouse (not on the lien) tried to file a claim for the fire, but was denied and settlement (complex situation). 

House prices (unless you are talking very expensive homes or apartment complexes) are unlikely to drop $100K.

Let's say this is a 400 unit apartment complex.  

Hi Justin, you have a complex financial situation, and your questions touch on detailed aspects of how capital gains and 1031 exchanges are treated in mortgage underwriting. 

@Alf Holst I know a property owner who does this for one of their larger apartment complexes, so yes some people do it

Hi @Jerrell Sweeting - I'm a broker & investor in NYC.

Thank you in advance as we all need all the help we can get on the complex world of the tax code.