While I doubt I'll be investing here (terrified that property taxes and the pension debt will ultimately cripple property values), I'm always interested in meeting new people.

Visit with people there and you'll get a more detailed look at things from people actively working in the areas.

Your question has been debated between BP tax experts both privately and publicly, for example here: https://www.biggerpockets.com/forums/51/topics/819991-expens...And we ended up where we started: no consensus and no clarity.There have also been court decisions that support my interpretation, even though I personally find these court decisions debatable.

Wage growth is still running at over 4%, above core inflation.This permeates to all workers, including the construction trades, and thus, to the price/cost of homes.

Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts.

Additional Info —Key Details:Location: Outside Santa Fe, NMProperty Size: 20 acres (valued at $80,000)Project: Two new STR unitsExisting Experience: Family has two fully-occupied LTRs nearby, generating $2,000/monthConstruction Approach: Self-contracted with licensed trades for electrical/plumbingCost Assumption: $80,000 per unit, plus ~20% for inflation (based on 5–8-year-old build costs)Financing: Using land equity as down payment on construction loan (expecting closing costs to be major expense)Request: Looking for feedback, potential pitfalls, and general guidance

You may see if you have one in your area that you could trade your property into something nicer. 

Consult an expert, but my understanding of a 1031 is that you can't pay cash for the next deal unless you paid cash for the original one. 

Lates on a mortgage trade can impact your ability to get loans in the future. 

I'm Igor - a revenue management expert with over 10 years of experience in the hospitality industry.