We have been doing research on a 1031 exchange, which seems like a great option to defer taxes temporarily, but from what we understand, eventually that may need to come to an end when we eventually sell the property, and pay taxes on the capital gains.

At the risk of hijacking this thread temporarily, another question has surfaced for my Investor friend:- the issue of Landlord Insurance.

In my elder years I have learned that dealing with issues head first compensates for a weakened memory.

Any intelligent reader will recognize this as a poor attempt to weaken my argument.

What happens if a major repair comes up and ruins cash flow temporarily?  

It temporarily ruins your credit such that you have trouble for several months after you pay off the cards restoring a good credit score.

It would seem to me that if you knew you were coming back to the original FHA financed house, then it would still be your primary residence, even if rented out temporarily, because you know you are coming back and are not trying to get another mortgage.

@Angel Jose Check on El Monte, one of my foreman to that temporarily left me is already on his 4th rehab/flip for an investor, well is definitely not dry there.

I am potentially going to buy three or more houses down there by the end of the year however I am looking at a different business opportunity at the moment that is holding me back temporarily!

I have my cash buyers that I market to up here in Canada, but with the US dollar becoming more expensive for us, these buyers are starting to slow their activity, temporarily.