If I sell it in 1031 exchange, can I then get another rental, rent it out for 2 year and then make it my primary residence i.e. homestead and that way avoid any depreciation recapture and capital gains?

When you have a big cost segregation depreciation plus your big startup expenses such as furniture and supplies, and you then have a big tax deduction against your big W-2 income because your passive losses are no longer limited with your big material participation, it increases your audit risk a ton.

It is just that with smaller amount of money, it is more difficult to reinvest to gain meaningful return out of the policy.

I am building houses on these lots and wish to sell to people who have capital gains so that they can benefit from the tax breaks.  

The plan was to gain more experience with a few more lower maintenance type single family deals before moving beyond that.I definitely don't understand the multifamily market, looking around, it looks extremely overpriced.

He should be able to take his forget $80,000 profit today and beat your $1mm gain 30 years from now.

Hello, passive income!

Looking to sell two properties in Milwaukee (bought in 2010 and 2015) and to do either a 1031 exchange (likely into a DST) or to reinvest the gains into an OZF.

Make sure you consider that.There are not other ways to directly offset w-2 income with str by jumping that passive v active income curb.have to get out and explore areas if you want to find that perfect investment, a forum is not going to highlight where and what best str area is best for you.

REITs and etf funds can be a pretty passive way to get into it.