Knowing their investment incentives can provide valuable insights for future capital-raising endeavors.

If you plan to close the LLC in 2024 or 2025 and transfer the DST interests to the individual partners, this transfer could potentially trigger taxable events.Distributing the DST interests to the partners might be treated as a sale or distribution, which could invalidate the 1031 exchange and result in capital gains taxes.

There are tax advantages for selling your primary where you can claim capital gains tax free. 

Some of the main reasons are that operating expenses, acquisition costs, and capital expenditures take a substantial amount of any would-be profits.

Cash out my investment account and pay the capital gains2.

You'll likely end up paying short-term capital gains taxes if you sell within a year, which can be pretty high since it's taxed like regular income.So, before diving in, make sure you have a solid plan for these scenarios.

A long-term hold in those locations will net you great profits decades later. so much so that you'll be able to extract the equity when you need it and not be worried too much about the capital gains because the gains are so great.

I have heard that Renovo Capital out of Wayzata has done this for flippers in the area. 

@Timothy Lin  The idea of the 1031 exchange benefit is to allow investors to use the capital gains tax they would otherwise have to pay when selling their investment property, And keep the profit from the deferred tax in their pocket.You get to indefinitely defer it into any type of real estate that that might meet your needs better. 

My goal is to wholesale to raise capital to do flips for shorter term investing and to buy and hold rentals for long term investing.