Remember, if you decide to sell in a few years, any bonus depreciation comes back as ordinary income. 

I'm a local real estate broker, investor, and manager (100+ rentals, mostly Airbnb/STR and multifamily).House hacking is a tried-and-true method and in Sacramento you can produce some meaningful income while enjoying the appreciation and tax benefits of owning real estate.

A 1031 exchange would use all of the tax in the purchase of your next property.

They mentioned they didn’t need any income.

The owner should look at it more like a DSCR, and should be pricing the property and offering terms such that the income from the property is adequate to pay back the loan.

The key is that in order to completely defer all tax you must purchase at least as much as your net sale. 

Your requirements to defer all tax are to purchase at least as much as your net sale. 

Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.Make sure you understand the Class of properties you are looking at and the corresponding results to expect.The City of Detroit has 183 Neighborhoods we’ve analyzed.DM us if you’d like to discuss this logical approach in greater detail!

So we GAIN 7million + tax payors etc.. 

Real estate investment can be incredibly rewarding, between the cashflow, appreciation, and tax benefits, it truly is the greatest wealth creation tool.