Jaycee, it will likely be personal income with other money coming from a lender.

@Luis Cerwin as others have stated, Nov - Jan is the worst time of year to have a vacancy.Majority of tenants live paycheck-to-paycheck, so all their income goes to Holiday spending starting with Halloween, then Thanksgiving, then xmas, then NYE.January is also historically the worst month for rent payments due to Holiday Hangover Spending.

This way, you build income-generating assets first while keeping future options open.

@Paul De Luca PITI 11.4k, Gross Income (once I move out) 12.5k 

The second seller gets payments on a new note worth $1.35 million.You the buyer received the taxable income event from the sale of the first property.

Start to evaluate deals based on the income approach and you'll do much better long term investing. 

I can get $7000 rental income per month total.

First, banks do not prefer W2 income over 1099 income at all.

Thanks everyone.Annual T4 income: 250K380K in liquid investments.Principle property est. valued at 670K with 250k left owing and 155K heloc attached.Rental 1: purchased 2021 for 220K current est. value at 270K was a house hack with 5% down and $1600 monthly rental income.Rental 2: purchased 2022 for 280K 20% down current est. value 345K rental is $2000 monthly Rental 3: purchased 2023 for 267K with 20% current est value 310K rents for 2100 a month.

Depending on the loan amount for the new property, roughly a little over half of the gain could be deferred through the exchange.Without a 1031, they’ll face taxes on the entire gain, including federal capital gains tax (likely 15% based on their income), California state tax, and depreciation recapture, potentially totaling $130-150K.