You can indefinitely defer the tax and use it to purchase nicer property/properties, as well as not have to recapture any depreciation.

@Travis TimmonsI had the same reaction as you did, but I held off on posting since I don't yet invest in STRs (I'm all LTR so far, and looking into my first MTR).Buying an STR "to offset income" makes me nervous as well...

Essentially, your new replacement property will consist of (1) a thirty plus year ground lease on the real property you already own; and (2) new capital improvements made on the real property you already own pursuant to the new thirty plus year ground lease.

For those that need a property eligible for immediate launch, the target can be smaller. - Expect buyer competition.

So if you have the property for a total of 10 years, moved in at year 8, little value or tax advantage.

Not sure how long you held the land, but there are some instances that the land can be used as a down payment. 

Houston ranked No. 9.The Lone Star State has held the first or second rank each year since 2016, U-Haul reported.

Looking for second property.

They lend me $193K but $40K was held in escrow for the rehab. 

Recommended he went through the due diligence process just sohe can understand the process and how his property gets valued.