It sounds like you’re off to a great start with your first fix and flip, and Santa Fe is an exciting market for real estate.

Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

In the short term, I aim to replace my monthly income from my current entry-level job, I dont make a ton of money so this shouldn't be too difficult.

They will replace it at 18% interest.  

Which sounds like a 95k gain.And yes, when the condo is sold you could opt to do a partial 1031 exchange with those proceeds and keep some for yourself.

If you cannot physically test this appliance or system, then you must assume it is broken and will need a good deal of money to be replaced or fixed.5.

In your situation, it sounds like the primary focus for you is more a quality of life play (reducing your commute time), and the STR may allow you to break even cash flow wise? 

That's a huge achievement, and it sounds like you navigated some real challenges along the way.Your story reminds me of a project I took on years ago.

Usually when someone shows up new to the forums with an inkling to do Section 8, they don't really understand the complications that can come from investing in them and have seen a YouTube or TikTok that makes it sound like a no-brainer to get paid by the government to be a landlord.

Hey Jason,Sounds like it is time for you to refinance your properties into DSCR loans.