you're not trying to sell the deal to us, you're asking us to help you analyze it. 

I then poured another $8M into it to bring it back to its former glory by selling every asset I own. 

In 2017 we started our journey with long-term buy-and-hold investment properties in the Memphis, TN area after selling a property that we were losing money on every month in NOVA that we purchased as a primary residence in Jan 2007 (talk about all-time bad timing) and then had to move with the Navy in 2009 (2nd all-time worst timing).

:)  We love defaulted note investing - you own nothing but are in control and can exit through the property or the borrower. if you do take a property back you can sell it outright, seller finance it, rent it or BRRR it.

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.

Whether or not the asset appreciates in 25 years I still have a paid off building.The risk is if the asset declines in value AND you have to sell it for some reason.

My friend said his client nearly bailed when she found unexpected wiring issues behind the kitchen walls..apparantly the seller hadn’t touched that electrical since the Reagan era..but with a patient electrician who understood the local code and a carpenter who improvised a shelving trick in the diningrom, they ended up selling above asking.Flipping and building can get tricky, especially once you start thinking bigger.

You would either need to sell and pay commissions, closings costs and maybe tax on some proceeds OR you would need to pay fees and closings costs to refinance.

Complexity does sell better.    

If we had to put this property for sell, it would had to be minimum $600k even for us to consider.