Hi, We have a nice property that we rented to a married couple. 

Now if they got married, had kids, and a vast majority still lived in apartments that MAY have the makings of a trend.  

While you may be eligible for a tax exclusion of up to $250,000 ($500,000 if married) on the sale of your primary residence, any period during which the property was used as a rental is considered "nonqualified use."

While opinions may vary, I rely on data to help drive real estate decisions and planning.Key ConsiderationsEducational Attainment: 77008 boasts higher numbers of residents with bachelor's (12,241) and master's degrees (5,739) compared to 77063.Demographics: 77063 has a higher percentage of foreign-born residents (41.02%) which typically indicates a strong rental market and with 76.86% renter-occupied versus 32.60% in 77008.Economic Factors: Median income in 77008 is $140,609 with a low unemployment rate of 3.37%, whereas 77063 shows lower median income ($51,899), higher unemployment (9.99%), and more families below the poverty level (16.51%), which may indicate economic diversity but also potential rental payment risks​​.Age Distribution: 77008 has more middle-aged residents (35-54) [8970 compared to 6,115] and a slightly higher proportion of young adults (25-34) compared to 77063 but both are popular with younger adults suggesting strong rental markets equally exist.Housing Market: 77008 features a higher percentage of family households (52.39%) and married-couple families (44.77%), suggesting stability and potential for property appreciation.Digital Advertising Demand: Houston Heights apartments (77008): 50,000 average monthly searches.

For example, the “Home Sale Exclusion Gain” (IRS Section 121) lets you exclude up to $500,000 in profits if you are married filing jointly and $250,000 if you are single.The post originally appeared on the BiggerPockets blog.

My W-2 for 2024 is over $250K which is the reason why i want to use REPS and MAterial Participation in 2024 by doing a cost seg  to offset W-2. 2- In 2024, two things happened: I married my wife who is a realtor and I also sold 3 of the rental properties which created a capital gain of $220K (one rental was a loss). 

We're likely going to go into our next place together after getting married which may be a few years :)

I was curious if anyone had insights on my scenario:Parents are living apart, yet still file federal taxes as 'married', but file individual state returns.

My guy will be doing the same.Year 3 we plan to make the move together and build (my guy works for a builder so huge discount there)After year 3 and we are settled and married and living in our home and we would have our duplexes we would love to continue into flipping, or BRRRR maybe one per year….

You're not married to your gf.