Instead of recognizing the gain of 600k - 100k, you get a stepped up basis at time of death.

Our team negotiated a purchase price of $40,000, recognizing that even with minimal improvements, the home could yield a profitable return.

That's great if you got a home run deal, but the reality for your first one is to try and live for free, and then get better for HH #2, and then incrementally better for HH#3, as you progress in your investing career, you will be able to recognize those great deals, but it is much harder in the beginning since you have a huge learning curve. 

By not taking a partial disposition deduction, you would be missing out on potential tax benefits associated with recognizing the loss on the disposed roof component.

That isn’t “investing” or any “technique” it’s gambling.

@Ashley Gamble not sure how I didn't see this before but I hope you have made progress on this issue by now.

Philadelphia has long been recognized as one of the most difficult cities to engage in business. 

If you consistently analyze properties, recognizing a good deal will be much easier when it shows up.

They didn't want men gambling away the house in a poker game and leaving the women and children without a place to live.The intent I think for a home to be designated your homestead is that is where you live. 

Guys with problems end up gambling everything away because they've lost too much to walk away now.