The replacement property must be similar in that it is another rental property. 

That way I still have a primary residence and rental properties. 

I know many investors go out of state for buy and hold properties to generate passive income, but is Blythe a lucrative market?

Purchase price: $100,000 Cash invested: $35,000 Sale price: $270,000 Hey BiggerPockets Community,I recently updated a multi-family property on a tight budget and significantly increased its value.

@Dallas Rapoport where is the property? 

By utilizing section 8 income we will turn it into a property that is insured beyond belief and make over $ 418,000 gross $320,268 net.

These properties include different foreclosures and those that sell below their market value.

Quote from @Tio Sam: Quote from @Zachary Deal: I agree, I would drive some properties that have sold as flip.

After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):REAL Red Flags That Matter:The Partner Complaint TriggerDisgruntled partner files Form 8082K-1 disputesPartnership disputes leading to tax filingsReal Impact: Instant IRS attentionSuspicious Loss ClaimsLosses exceeding investmentArtificial basis inflationSudden large losses without economic realityExample: $100K investment claiming $500K lossesRelated Party GamesCircular property flipsBelow-market transfersFamily partnership schemes without substanceWatch Out: IRC §267 and §707(b) violationsDebt Engineering Red FlagsBasis inflation schemesArtificial guarantee arrangementsPartner debt shifts near year-endCritical: IRC §752 compliance matters!

@Jeffery Jones you understand you'll be buying Class C & D properties, not in the best of areas?