Long-term rentals are a solid choice, but mid-term rentals in medical hubs (like yours) can offer strong cash flow with less turnover. 

I own a duplex with my husband and have been self managing the rentals (one is MTR and one is LTR) under my LLC.

The sales and rental market in SWFL is absolutely terrible.

My wife qualifies as a Real Estate Professional (REP) in 2024, but she did not qualify as a REP last year, and our rental losses were passive in prior years.

Read that PM contract very carefully.When you go to Memphis, walk not only the property you're interested in, but several of the vacant rentals you choose.  

Does it need to be converted back in to a rental after your 2 years to qualify for a 1031?

Quote from @John Keane: Hey @Trevor FinnAbsolutely, I have the structure mapped out and organized to review with investors. 

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.While the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall loss.

Since you’re looking for a safe neighborhood with good rental potential, consider areas with strong job growth, good schools, and steady rental demand.

Whether you’re flipping, building, or investing in rentals, I’d love to hear about your experiences and how you’ve worked around any roadblocks.