Having just spent the last 5 days touring Portugal its apparent this move that Clayton and his wife made has yet again been to their benefit at the cost of their investors.
This is hardly any kind of hardship on them...

I think that is the right way to start until I grow, and eventually buy a property and then figure out an exit strategy.

Evict her for creating a health hazard--closing off the deck blocks an emergency exit and stops air circulation which allows mold to grow easier, plus it is altering the house.  

When you exit your will lose money. 

It offers excellent potential for investors due to the multiple exit strategies available.

Plus if the lender were to calla  $70k loan on a $200k+ property-  plenty of exits in this one. 

If my husband and I were to start over again we would buy higher quality assets and not be focused on immediate cash flow and unit count like we were when we started this after exiting a fairly decent sized small business.

My Company at the time bought props sub too but we NEVER ever bought anything that did not have substantial equity day one so that we could always exit at anytime with a tidy profit.

Ensure the numbers align with your goals, factoring in cash flow, exit strategies, and risk mitigation.

Now, I think the best exit strategy to avoid recapture tax continue to build on your portfolio would be to do a 1031 exchange.