As far as a DST goes for replacement property, it can be a great potential solution for those who are no longer interested in the traditional responsibilites of ownership any longer or who may be having a difficult time finding adequate replacement property or properties. 

I get what they are trying to do here, preserve 2-4 unit properties and discourage deconverting to SFH. 

(But not for a “I’m going to live in it 50 weeks out of the year and rent it out two weeks”, IMHO, if that was your idea.  

@Mayank JainDo you have a W2 job or do you own a business that is not involved in real estate?

And yes, I understand that they do not have to notify us if the note is bought out.

If directly to the seller, then you need to ensure that the payment is made, but also that it is made to the person who is entitled to it.

Here's how to handle your situation for tax purposes based on IRS guidelines:1.

What are your goals for holding investments in these markets?

With how much equity you have in your primary if it was me I would think about doing a cash out refinance for the whole thing as rates would be lower.

You need to do your own homework by manually checking comps on VRBO and Airbnb.