Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

You still need operating money to buy flips and long term rentals.

If you do anything more virtually I would be interested in attending.

I am NOT operating to where a late tenant payment affects my ability to manage my rentals and pay my expenses.

When the underwriter has to sift through operating agreements to determine who the members are and struggles to understand who possesses ownership interests that trigger that particular lenders guarantee requirement you are doing yourself more harm than you are good. 

Just be wary that technically, according to Chicago's Airbnb ordinance, you can only operate 25% of the units in your building as Airbnbs.

Turnkey operations are an excellent way to minimize headaches and begin Cash Flowing the day you purchase your property.

If the property is fully leased and operating well, like your situation, the numbers might not make sense.A few questions to think about....Deferred maintenance or layout issues: If you already need significant updates, the conversion might be a good opportunity to reconfigure the space.

And dont get me started with gas meter upgrade requirements if its near a source of ignition or under an operable window.

It can be a great win-win, simply by bisecting the property and hosting operation.