- What skills, attributes and experiences do you and your husband have?

A quote attributed to Abe Lincoln (I believe) goes something like this:"If I have 4 hours to chop down a tree, I'd spend the first 3 sharpening my axe."

When you sell the first thing that happens is that the sale must be apportioned between primary residence and investment. 1/3rd of the sale would be around $600K (the primary residence portion)2/3rds of the sale would be around 1.2mil (the investment portion1/3rd of the gain would be around $283K (the primary residence portion)2/3rds of the gain would be around $566K (the investment portion)When you sell you would get the gain attributed to the primary residence portion - $283K tax free.The remaining gain would either be taxable or your could do a 1031 exchange.The requirements of the 1031 exchange are that you purchase at least as much as your net sale (1.2 mil ish) and you use all of the cash from the sale (I don't know your debt but it would be the net cash minus the $283 that goes to you tax free). 

To be clear, when you sell the property you later move into, the 121 exclusion would only apply to, or part of, the gain on That property.....whatever gains/depreciation recapture deferred in the 1031, attributed to that property would still be due.

I attribute this to it now being off season and inventory is sitting there and very few buyers on the island.Have any of you invested in a similar environment?

What types of attributes does your list consist of?

@Michael LiddicoatThe seller can accept seller financing(installment plan).This would allow the seller to report gain and pay taxes over a period of time instead of all at once.The downside for this is that gain attributable to depreciation recapture is taxed upon year of sale.An alternative would be to do a 1031 exchange.

Obviously, this could be attributed to higher competition etc, but I believe it's that people have move online to find out more about who they are considering doing business with.  

I assume whether the first floor (the other 2 floors are residential apartments) or the building as a whole is considered class B or A is largely based on opinion or are there specific attributes that make a bldg class A rather than B? 

Is that something you put in your lease, that in the event of an eviction, all costs will be attributed to tenant?