Your best bet is a property on water and sewer in a non HOA community and either convert the garage to an ADU or Build a separate ADU .

My name and my daughter’s name(s) are also in title and the loan.I have really good equity in both properties (six figure) with great interest rates.At some point my daughters and their husbands will move out to upgrade to something bigger.I want to turn these properties into investment properties after my daughters move out:  thinking the best way is to convert in my name only.Also considering leveraging the equity in the properties to help buy new homes/townhomes for my daughters when they are ready as well.Wondering what the best strategies would be for me to expand property portfolio, minimize tax impact , create more passive income while continuing to help my family grow.I appreciate any advice! 

A standard 1031 exchange requires that the same entity selling the property also acquires the replacement property, which becomes challenging when proceeds are split between partners.Potential Strategy: "Drop and Swap"One approach is the "Drop and Swap" method:- Convert Ownership: Before the sale, the LLC distributes the property to the partners, converting joint ownership into individual tenants-in-common (TIC) interests.- Individual 1031 Exchanges: Each partner can then independently conduct a 1031 exchange with their share, deferring capital gains taxes by reinvesting in like-kind properties.Considerations:- Timing: The IRS may scrutinize transactions where the "drop" (distribution) and "swap" (exchange) occur in quick succession.

You can convert to a third rental down the road if that day ever comes.

You can make straight Roth contributions or convert cash as you’re talking about but you can also convert assets from pre-tax to Roth.

After the sale, the new building inspector says that the property is not Zoned for 6 residential units, and the 2 units on the first floor were converted from Assembly A occupancy to 2 Residential units without permits and permission from the city.

Lastly, ADUs are allowed for NON owner occupied properties, opening this strategy up for investors who could convert a SF into two units. 

Hi, I'm converting a one bedroom apartment to an STR.

I wonder with Canadian economy struggling if there is potential to purchase distressed properties that could be converted into long-term rentals or successful AirBnbs (especially in the cabin markets that have been hit hard).

I currently manage a long term rental and working on a single family home fixer (will probably convert to rental in the future) in Cali.