While it is possible to convert an investment property acquired through a 1031 exchange into a primary residence, this requires careful planning.

It's a high risk strategy that you've chosen. 

If they are the 3M version and you are slow and careful on the pull off, they usually release but not always.

(other issue was a leaky toilet we took care of, at our expense).  

The key difference, though, was he spent months carefully getting to know the local architecs, reputable builders, and even a couple of niche design firms that specialize in modern builds for mid- to high-end buyers.

If that investor hadn't planned it carefully and re-invested that money into the property or even the purchase of another then a recapture fee would hit them hard. 

.- Since we're not really in full control of the property, the Hold Harmless also indemnifies us against anything that goes missing at the property and squatters.We get asked/told to do all kinds of crazy stuff by owners, who either don't care what happens to us or haven't really thought everything through.Hope this addresses your question.

We care about our investors' success, but it's ultimately up to each investor to take action to accomplish their goals however they do it!

I'm not going to continue arguing with you about this on this thread because quite frankly nobody here cares if we are being honest.

.- **BRRRR (Buy, Rehab, Rent, Refinance, Repeat):** This strategy can be lucrative, but it requires careful planning and execution.