Next, it holds the washer/dryer.

Quote from @David B Graham: Investment Info:Small multi-family (2-4 units) buy & hold investment.

Based on the comments received thus far I think it's prob make the most sense to hold on to the note.

However, when I requested the return of my funds on June 26, 2023, that information did not hold true.

The QI for the 1031 buys the land and holds it while you start construction on it. 

Step 2- close and start rehab-- would need to pay holding cost during rehab?

I've had one recent multifamily deal in Florida exit with a 32% IRR and one hotel deal in Atlanta refinance and return 110% of the original invested capital through dividends and the refinance and the hotel continues to make regular 16% distributions.  

The contractors who do work for me have zero issues with me sourcing the material if disclosed up front and not holding them accountable for any material issues.  

Future Appreciation: Holding onto the property allows for potential appreciation over time, especially since it’s in a neighborhood with homes ranging from $500k to $1.5 million.Pros of Renting: Steady Cash Flow: Renting the property, especially with an ADU, could generate substantial monthly income, especially since there’s no mortgage.

When evaluating potential properties, consider three exit strategies: if you can sell quickly for a profit, hold it as a rental, or take a loss.