Tax and Legal ConsiderationsUnderstand the tax implications and legal responsibilities associated with rental income.

I opted for added a $200 non-refundable deposit. 

I'd also add to that that you are paying a 20% withholding tax on gross rental income. 

Don’t want to pay taxes on the capital gain.

It will have to be a pass through/disregarded LLC to keep the tax payer the same and the 1031 valid.

You could look into forming a C Corp as an alternative way to own this property that could affect your tax returns differently, I am not a CPA or giving tax advise.

Quote from @Devin James: Im currently learning this lesson with New Builds that have taken twice as long to complete than anticipated.....Finishing a Real Estate project ASAP is critical because...1) Holding Costs add up quickly- Loan Interest- Property Taxes- Insurance2) Investor Capital- Our financial projections are dependent on how fast we can turn our investors capital.

Keeping clean records from day one really helps when tax season rolls around.

We were initially looking out of state for a potential move and or investment property just because the property taxes without being able to homestead, plus high cost of insurance, and harsh weather on homes made me feel like it might not be worth it.

If you continue filing taxes jointly the income you realize from your separate property will still need to be explained and redacted, regardless of the type of entity holding the real estate.