When we moved, we turned it into a rental, hoping this would be the start of our real estate journey—something we’d like to continue once my husband retires.Some key details:My husband is active duty and will retire in 3 years.We have one final move coming up this summer to Raleigh, NC.Our current debts are crippling us—the high interest makes it tough to stay afloat every month.The plan I proposed to my husband:Sell the rental property.Use the proceeds to pay off all our debts, set aside emergency funds and a down payment for our next home.Free up $1,500/month from debt payments, and that also can stash in a high-yield savings account.Regain full VA loan entitlement, allowing us to purchase a multifamily home and use the house hacking strategy for up coming move.Avoid capital gains tax, since April marks five years of ownership, and the tenant’s lease ends in May.This wasn’t our original plan, and we hate the idea of using our equity to pay off debt.

However, purchasing the replacement property from an estate where your mother-in-law is the executor and other heirs are your wife's aunts and cousins raises potential related-party concerns under Section 1031(f).The IRS generally prohibits 1031 exchanges between related parties unless both the buyer and seller hold their respective properties for at least two years after the exchange.To stay compliant and avoid disqualification, ensure:The estate sells the property directly before any distributions to heirs.You hold the replacement property for at least two years.The transaction is conducted at fair market value with no prearranged agreements.Given the IRS scrutiny of related-party 1031 exchanges, consult a qualified CPA or 1031 exchange accommodator to structure the deal properly and avoid potential capital gains tax liabilities.This post does not create a CPA-Client relationship.

Have you heard the expression "when visiting someone, don't stay longer than 3 days or you begin smelling like dead fish".  

So stay tuned

You’ll want to handle this carefully to stay within the law.

Buy a quality property, stay away from the hood, rehab it as if you would move in, take your time picking a tenant, you'll be find.

Tenants prefer detached housing over attached housing and stay longer. 

I'm currently house hacking my multifamily in Danbury and have another duplex in Brookfield CT that could’ve been a house hack deal as well.My 2 cents are: Stay prepared (preapproved) and on top of the market because when the good opportunities come, you have to jump on it.

Start small, be patient, and stay connected with local meetups and online investor communities for support. 

For another business I run I do post daily accountability in a FB/mentorship group and that does help me stay on track.