Your biggest problems here are going to be how to properly qualify someone, what to do if someone stops paying, footing the bill if you have a big repair item, finding quality and reasonable vendors/contractors to fix things, and keeping track of payments.If this isn't you, give me some more context of where you're at and I can give some better insights. 

@Bao Vu The purchase price and related expenses from 2023 should be included in the cost basis for the flip sold in 2024, reducing your taxable gain.

Thank you for the insight Corey, definitely gave me some things to think about! 

Great, thanks for the insight. 

Once you sell your old property and use a QI, the exchange will be complete and your capital gains will be deferred.

It wasn’t just about the property—it was about the lessons she was teaching her kids along the way.During the drive, she shared valuable insights with them:• How real estate can generate income.• Why patience and hard work are critical to success.• How to think creatively about building wealth.Once at the property, the kids explored, asked questions, and saw firsthand how opportunities are created through smart investing.Involving children in real estate teaches them:• Financial literacy in a hands-on way.• Entrepreneurial thinking and problem-solving skills.• The confidence to believe they can achieve financial independence.It’s amazing how small moments like these can inspire the next generation to think bigger and dream bolder.How are you involving your family in your real estate journey?

However, these costs can often be added to your property's basis, which helps reduce capital gains tax when you sell the home.Once the property is officially a short-term rental, subsequent repairs and maintenance would likely qualify as deductible expenses. 

Plus for its high cash flow potential, utilizing a 1031 exchange to reinvest gains effectively made this experiment a relatively low risk for me.

Currently working to gain capital as I educate myself and seek knowledge through every possible avenue.

Appreciate if anyone has first hand insight.