This allows you to postpone tax liability until you sell the new property without a subsequent exchange.2.

I commonly hear that permitting is not an issue unless I am touching plumbing or electrical but just to be safe and avoid any future liabilities, I am trying to understand it is even feasible to get the new rooms/garage permitted for their intended use.3.

While it can be beneficial for spreading tax liability and estate planning, DSTs are complex, costly, and subject to IRS scrutiny, requiring precise implementation.

@Rod Merriweather Getting a LOC (line of credit) secured by real estate from a bank is going to be tough as the line of credit is viewed as a short-term liability while the property is a long-term asset.

I imagine you are doing this possibly for liability purposes. 

Personally I push for at least $1MM liability coverage.

Their customer service department is very responsive.When selling a service as taking care of everything and handling the complete process, this includes all forms, liabilities and considerations for that particular need.

Short-term rentals require adherence to specific ordinances, and forming an LLC offers liability protection but incurs California’s annual franchise tax.

Many places require negligence for liability.

For minimizing upfront costs, FHA is better; for liability protection, conventional with an LLC is ideal.