Everyone has a unique combination of skills and circumstances. 

I am considering hosting the rental myself and living next door.Could anyone provide guidance on how to proceed under these circumstances?

The exterior clapboard sidings, rake boards, fascia were slowly rotting away from years of neglect.

.); the larger drawbacks of course are lost investment gains in the plan and potentially needing to repay the loan balance in full if circumstances change, among others.

This is alarming; it's the first time I've heard of it.Under what circumstances would anyone be required to pay more than 1-2%?

When a property is purchased in a Sec. 1031 exchange, the tax basis calculations can vary significantly depending on the circumstances.

Let's break down the pros and cons of each approach:Forming an LLC in the State Where the Property is Located:Pros:Compliance with Local Laws: Establishing an LLC in the state where the property is situated ensures compliance with local regulations and laws specific to that jurisdiction.Legal Clarity: It provides clear legal jurisdiction and may simplify any legal proceedings related to the property in that state.Perception: Operating with a local LLC may give tenants and local authorities confidence in your commitment to the community.Cons:Additional Costs: Setting up and maintaining an LLC in another state means incurring additional registration fees, taxes, and possibly hiring local legal counsel.Administrative Burden: Managing multiple LLCs across different states adds complexity to your administrative workload, including extra paperwork and compliance requirements.Tax Implications: You may face tax obligations in both the state where the property is located and your home state, potentially leading to double taxation or complexities in tax filings.Managing Through Home State LLC:Pros:Simplified Management: Handling all properties under a single LLC streamlines administrative tasks, reducing paperwork and simplifying tax filings.Cost Savings: Avoiding the need to establish multiple LLCs in different states saves on registration fees, legal expenses, and ongoing maintenance costs.Consistency: Uniformity in management practices and legal structures may contribute to efficiency and ease of operation across your real estate portfolio.Cons:Legal Exposure: Operating out-of-state properties under a home state LLC may expose your personal assets to the laws and liabilities of the other state, potentially diminishing the liability protection the LLC offers.Compliance Challenges: You'll need to ensure your home state LLC meets the legal requirements for conducting business in other states, which could involve additional filings and fees.Perception and Credibility: Some tenants or local stakeholders may prefer dealing with a landlord who has a local presence, which could impact your reputation or relationships in the community.Ultimately, the decision depends on your specific circumstances, risk tolerance, and long-term goals.

It will depend on the other businesses, investments, personal and financial circumstances specific to you.

Do not, under any circumstance, count on appreciation to make up for smaller than expected potential profit.

Often(but not always) these neglected homes are owned by an elderly individual in an assisted care facility.