Generally, for the optimal refinance, these are top of mind for BRRRR strategy investors:Return of capital: The key “secret sauce” of the BRRRR method is to build portfolios using the same capital over and over—which relies on getting your basis (or more) back on the refinance, where basis refers to the money you invested in the property (down payment and cash used for renovations).Speed: Refinance lenders use the term “seasoning” to refer to the amount of time (typically in months) between the purchase of the property and the refinance.

He could sell tax free, you will pay regular income tax on the sales profit. 

Picture attached for reference and can gladly provide more. 

I see people keep referring to tax strategy and buying/selling properties.

.- If still skeptical, ask for personal references from employers, community leaders, or other respected individuals who can vouch for their character and reliability.By using these methods, you can make a more informed decision about renting to this couple, giving them a fair evaluation while also protecting your interests as a landlord.

@Chandra Faulk,  What you're refering to is what we call a diversification exchange. 

@Alex P.Here's a few references to start that may help you to find the answer to your question: Treasury regulation §301.7701-(3)(b)(1)IRS Private Letter Rulings 9807013, 200732012 and 201216007If you need help finding these or interpreting them, as well as knowing how reliable they are for you to use for your own taxes, consult a tax professional. 

After much discussion with my regular contractor I got him to realize that if he does the project instead of subbing it out it will only cost me about $7K.

These are sometimes referred to as in-law units or granny flats and they are not new to the commonwealth but a favorable ADU policy has the potential to add over 10,000 units and offer homeowners a potential source of income.As a lifelong house hacker, my wife and I immediately recognized the potential of this 2-story garage in the back of the property.

Regular properties are probably in a better position because people always need a place to stay, and if I'm not mistaken back during COVID if you had a tenant who couldn't work you could call your bank and pause the mortgage.