However, you can defer taxes under §1033 involuntary conversion if you elect to reinvest the proceeds into a similar rental property within two years (three years if the government condemns the property or threatens to do so, and four years for a principal residence in a federally declared disaster area).To reduce taxable gain, consider:Electing §1033 treatment and reinvesting the full $300K into a new rental property to defer taxes completely.Partial reinvestment, where only the portion not reinvested is taxable.Properly documenting all replacement costs and property details to ensure IRS compliance.Using cost segregation on the new property to accelerate depreciation and offset future taxable income.Since the §1033 election must be made, consult a tax professional to ensure compliance and maximize deferral benefits.This post does not create a CPA-Client relationship.

It sounds like the reason you wanted to do this was to achieve Real Estate Professional Status. 

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

While you have mentioned that the tenants’ frequent texts are annoying, it’s best to stay professional and set boundaries by letting them know you’ll update them when there’s progress.

One strategy you can use is to continue what you are doing and house hack and rent to traveling professionals. 

Choosing a solution like that means missing out on significant opportunities to free up your time for what you do best while also foregoing the expertise of a tax professional who could provide substantial benefits—potentially saving you thousands of dollars.

Going live as a STR in 2 weeks Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Always underwrite conservatively Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?