Nothing in this post should be construed as, or relied upon, as legal advice or as creating a CPA-client relationship.]

Hey bigger pockets family, I'm facing a dilemma that consists of me choosing whether or not to buy a tiny home and put it on my current home's property, creating an ADU to rent out or to save that money that I would put into the tiny home and save for my next purchase.

Destroying the house calling board of health for tenant damages and literally every little thing creates huge expenses.

What I wrote above does not create an attorney/client relationship between us.

However, you can defer taxes under §1033 involuntary conversion if you elect to reinvest the proceeds into a similar rental property within two years (three years if the government condemns the property or threatens to do so, and four years for a principal residence in a federally declared disaster area).To reduce taxable gain, consider:Electing §1033 treatment and reinvesting the full $300K into a new rental property to defer taxes completely.Partial reinvestment, where only the portion not reinvested is taxable.Properly documenting all replacement costs and property details to ensure IRS compliance.Using cost segregation on the new property to accelerate depreciation and offset future taxable income.Since the §1033 election must be made, consult a tax professional to ensure compliance and maximize deferral benefits.This post does not create a CPA-Client relationship.

It's not going to play out exactly like you hopedIf you have that mindset, not only will you have realistic expectations, but you'll create success over the long term.

I would consider selling one of the properties, paying off the debt, creating a reserve for your remaining investment, and ensuring you are 100% financially stable before you invest again.

The one tenant worked at a furniture store and created "rooms" in the basement using cardboard and carpet remnants.

@Jim Rice Yes are you trying to create notes, do you own some and want to sell them or you trying to broker notes?

If you have appreciation, you will create enough equity over 30 years to reset the clock on all your capex items.