You will never pay more tax in recapture than what you originally deferred, assuming your personal tax rate stays the same.

Personally I’ve got the majority of my assets in real estate.

Since you purchased your primary recently and in Houston, I personally am bearish on your appreciation potential.

He is different than a personal trainer bc at least a trainer cares about your results and isn't lying about their own. 

So, things change a bit.If it is his personal home, there are more restrictions.For an investment property, if you take over his financing, read through the deed of trust (mortgage) and see how they handle transfer of ownership.

I have a feeling this is designed to maximize retention of now dislocated persons. 

If you're looking for a more landlord-friendly market, I personally recommend Columbus OH.

If the management fees stay in Sch-E, it is exposed to ordinary income both at Federal and state level, which is way higher than SE taxes of 9.55% (15.75-6.2 (personal social tax already maxed out)).2.

@Micheal Singleton I have the perfect person you should connect with.

I do not personally use him based soley on the fact that the firm is virtual.