Then you have wiped the slate clean on the loss carryforwards, that $200k of released loss carryforwards offsets ordinary income first - so you will actually get a great result.Then, in 2025, when you have no more pass loss carryforwards, consider making that real estate professional status aggregation election, and utilizing cost segregation on properties you acquired in a prior year.Of course all of this - get some real tax help, I'm just another guy on the internet here, and there should be a deeper dive on the circumstances than what you can get through a forum posts to ensure this all actually works properly in your situation.

The partial exemption is usually granted if you have to sell due to certain circumstances like a job relocation, health issues, or other unforeseen events.

Under normal circumstances a fee to manage the contractors and construction process seems appropriate, but one of the GPs owns the construction company that was used for the renos.

When it is a new development, it isn't uncommon to see someone use the date the Certificate of Occupancy was issued - perhaps that marks the "ready", but it still might not be "available".So you can certainly have a property in service in a given year, but not actually have any rental income - but certainly your facts and circumstances are much better if you can actually get a tenant in there, that (should) shore up your defense on that question ever coming up unless you are playing weird games just to get a given in service date for tax purposes.

Ultimately, I sold the property for about break-even because of personal circumstances that changed in my life.

A good realtor can generally help you win a bidding war with a higher earnest money and a fast close with no inspection if that was the case.Under the current circumstance you could pull out just enough cash that will allow the home to cash flow based on a LTR.

I think personal circumstances are ready, and I just need to learn and get the local knowledge you mention.

Guru BS - A guru charges $30k for mentorship of a program that while legal is only doable in a very limited number of circumstances and or his “training” in no way prepares the student to successfully implement any real estate investment strategy let alone the one the guru is selling 4.

That said, it is not always best to go a specific route, it mostly depends on your specific circumstances.

In either circumstance, the door must look as it did when they moved in.