If you're curious - read it here: https://www.biggerpockets.com/forums/51/topics/1221700-rant-...In closing: The dangers of shifting the timing (of your income, expenses, and business transactions.)A purely mathematical exercise may indicate some beneficial timing for this or that.

Speaking from the Arizona perspective, we are experiencing continued growth, attracting lots of new residents (Californians choose Texas and Arizona as their top 2 places to move).Here's an economic forecast:https://www.azcentral.com/story/money/business/economy/2019/12/11/arizona-state-university-annual-economic-forecast-predicts-slower-growth/4398074002/Not sure where you are getting your "low rent" thoughts, maybe compared to CA.

Will the capital gains in this scenario be considered passive income from an IRS perspective ?

@Richard Benjamin Wilhite, @Bill B.makes some good points about loan terms and the strict identification rules for a 1031 exchange.I would add from a tax mitigation perspective that buying the largest property possible will give you the greatest amount of cost segregation possibility and at the lowest cost since it would be one study rather than several. 

Hi @Catherine Javier,Your options each have pros and cons, but let’s break them down strategically:Renovate and Shift to MTR/STR: This could maximize cash flow ($2,400+ for MTR) and offset the costs of renovations.

Thanks - will likely have to be an exception but definitely possible since the story "makes sense" from a lender's risk perspective

They're such a massive campaign that it seems unlikely, but with too much guest-first action you can expect a small shifting of the tides.

That allows me to show ROI from both a cash flow perspective as well as total ROI (cash flow + debt paydown) when compared with the estimated equity.The results were eye opening... there's a few on there that I'm likely selling off as a result of that exercise and a few others I'm going to do a cash out on.

How long must you wait before being able to rent out a primary residence property from a lending perspective?

“We shifted to a hard-core marketing strategy,” he said.