You can use that scenario as a learning experience when you may or may not encounter future challenges. 

Seller number two walks away with all their cash, and seller 1 who already agreed to SF has now become a PML without the challenge of negotiating each deal with them.

The original post leaves the door open for a challenge by the IRS, so the safe harbor of holding it for investment for two full years is the safer option.  

Challenges?

In that case, you’d typically need to file a legal challenge, which could involve going to court and showing that the restriction is unnecessary or unreasonable.The best advice I can give would be to consult a real estate attorney to understand your specific situation and options.

-Opportunity cost: A 7% interest rate isn’t great, but if you think you can achieve returns higher than 7% by buying another cash-flowing property, paying off the mortgage might not be the best use of funds.Now, let’s explore saving to buy another property:Investing in a Second PropertyPros:-Diversifies your portfolio, reducing risk if your Palm Desert STR underperforms or faces challenges (e.g., stricter regulations or lower demand).

However, if you hold a 30-year-old depreciated property for 10 years then it's going to be challenging to exit.

Challenges?

Just wanted to introduce myself.My name is Ariel, I am 32 years old (this Thursday), and I am making my first steps as a real estate investor.As I live abroad, most if not all of my work would be remote, and right now I am focusing on Jacksonville, FL.My main goal for this year is to fix and flip  at least 2 SF's properties, and for the next few years to increase this number, maybe do some MF, and possibly to also BRRR when I raise enough of my own capital.At the moment, my biggest challenge is the fact that I am remote, so I could use some help from a local realtor or management company.It's so amazing to know this community  exists, and I am thrilled to actually take part in it

Zachary,Your concerns about Cleveland are valid—high property taxes and stagnant population growth are definitely challenges to consider.