This benefit allows the owner’s estate or heirs to receive the property at a new, higher basis—reducing capital gains taxes if they choose to sell the property after inheriting it.In short, partial disposition allows tax deductions for retired property components during ownership, while the death step-up basis resets the property’s depreciated value, providing tax relief for heirs.

If you’re selling and you’re going to buy another rental no matter what, if you probably do a 1031 unless you have almost no capital gain or depreciation capture.

There is no current tax on rental income and capital gains.

By adopting the house-hacking method—living in one unit while renting out the others—we plan for the tenants to cover the mortgage and gain valuable property management experience.

I am excited about gaining more knowledge and deals! 

Let me break down the numbers for you on the debt model versus the equity model.Equity Model for the house on Noble:With Debt 7.875%Purchase Price$137,900.00Title Fees$4,541.00Financing Costs at purchase$1,700.00Insurance$1,257.00Rehab Costs$40,000.00Utility Costs while vacant$450.00Taxes while vacant (3 monts)$150.00Hard money payments$4,311.67Option Fee$3,900.00Loan$180,000.00Refinancing costs$8,000.00Reserves in account$10,000.00Shiloh's 5k share of profits$5,000.00Amount left into the deal$29,409.67Rent$1,500.00Monthly PI Payments$1,300.00Monthly Taxes$54.00Monthly Insurance$105.00Cash Flow$41.00Sales price$269,900.00Loan amount after 3 years$175,000.00Closing costs on the sale$2,000.00Proceeds from sale$92,900.00Profits from sale$63,490.33Profits from Cash Flow$1,476.00Profits from Option Fee$3,900.00Total Profits$68,866.33Dividing the ProfitsOperating Partner$31,933.17Money Partner$36,933.17Total money returnedOperating Partner$36,933.17Money Partner$76,342.83APR for Money Partner42%Return for the money partner for the debt Model for the house on Noble First position lender 180,000 at 75% of the $240,000 ARVSecond position note from private money lender for $12,000 leveraging the property to 80%.If the option gets exercised at the end of the option period to keep the scenarios the same, then the total gain for the $12,000 would be $3,600 for the 3 years at 10%, which is what I would offer in second position for a note less than a $25,000. 

Living in the worst unit each year and fixing it up-- the equity gain is just going to be phenomenal.

To Sum it up, its a good idea if you can exceed the cost of capital (higher rate than your cost of debt) with what you earn on your heloc/debt you pull out and invest.The question is how much gains above is enough to substantiate the risk of your variable interest rate, well thats up to your personal investing criteria.

By working for a larger corporation you are gaining an unfair advantage, by letting them train and develop you (while you are getting paid) and you do real estate on the side.This idea is not from me, read RichDad. 

It also requires gaining a level of sophistication and knowledge that not everyone has the time, inclination or ability to do.