The home is worth a lot more then the note is selling for.Marie Johnson this is almost exclusively the case.

@Julian Martinez The good thing about your position is that if you decided to sell the property you can qualify for the 121 exclusion, and qualify for a 1031 exchange.

If the landlord's lease with the other tenant provides that tenant the exclusive right to sell certain products or services at that location the landlord might have put themselves in a bad position.

At the time I looked, 20 or so years ago, the problem with smaller down towns is the proliferation of nearby strip malls, where the stores are surrounded by a large parking lots, and for laundromats, attract more customers as they can park easily, walk to adjacent stores for shopping, snacks, and browse newspaper and magazine racks, which explains why they do better, there's more customers.

I have my separate allocation of funds exclusively for investment property.

Another option would be to use the Section 121 exclusion for your personal residence.

You sign a drawn out contract that gives the warranty company a long lists of outs and exclusions.

A 1031 exchange is NOT available for owner occupied property so that’s the bad news.The good news is for owner occupied primary residences, for married couples, the first $500,000 of pain is tax free.No need to worry about a 1031, live in the house, sell it, use the $500,000 exclusion and you pay KP tax on whatever profit may exist,2.

I realize you are still looking at a house hack and I would encourage you to focus on that, "since February" is a bit vague (is that inclusive or exclusive of Feb?)

I use Zillow (and its network) exclusively now and have not had any issues finding tenants.