We're exploring creative ways to provide him with the cash needed for the down payment while avoiding triggering a taxable event.One strategy we're considering is purchasing his future primary residence ourselves, making the mortgage payments, and then, once we've built enough equity—comparable to the appraised value of his rental properties—transferring the title to him as a form of exchange.What are your thoughts on this approach?

Quote from @Jose Lacayo: Hi everyone,I’m on the fence of pulling the trigger on a build with Delta in North Port.

I guess it triggers the "sunken cost fallacy" part of their brain.

The boot amount is taxed as capital gains and may also trigger depreciation recapture.For example, if you sell a property for $500,000 with a $300,000 basis, resulting in $200,000 of gain, but reinvest only $400,000, the remaining $100,000 is taxable.

Depends how you approach them and if you’re ready to pull the trigger when you find the right deal.

What I hear from various people involved in the STR world in Denver and Colorado Springs is that this bill is likely to pass, but that it's also likely to be amended from its current language.There are two potential areas of change I hear about:-- The number of nights rented as a short-term rental that trigger this reclassification.

Pull the trigger and learn as you go. 

Just make sure you guys are comfortable with the area before pulling the trigger.

Investors aren’t acquiring fractional property ownership but are instead buying income rights, meaning the arrangement avoids triggering real estate co-ownership laws or property title issues. 

@Kevin Hoover, with certain types of entities it is possible to contribute property to and distribute property from that entity without triggering a tax event.