My partner is a builder in the LA area and his client posed an interesting question for him that could affect financing in the future. 

I know that I am taking a huge risk by wanting to build but the existing properties are either in areas I’d never live in or too far away from the Metro Detroit area and I really want to come back to the city in the safer parts before I’m priced out in the future. 

If you expand your rental business in the future, an LLC may be worth considering, but for now, keeping good records and securing appropriate insurance should provide adequate protectionThis post does not create a CPA-Client relationship.

If you opened the exchange with the intent to hold the property for investment, and then in the future circumstance changed which caused you to reconsider the use of the replacement property and convert it to personal use, then a period of time less than two years might be reasonable.  

This is critical because depending on your future goals and what we think the market is going to do, we can structure everything to keep more money in your pocket for the next deal. 

Audrey - Dave might disagree or add more context, but I think that predicting 5-year rent growth is a bit like forecasting the stock market 5 years from now. 

Dscr will be useful in the future for fixer uppers and unique buys. 

This stands true for any/every investment segment in existence; stocks, ETF's, business ventures.

With hopes to build two additional cabins in the future.

Letting someone out of the lease is not the same as nullifying that the lease ever occurred; it is just an agreement that you won't go after any additional months of future rents that would otherwise be owed.