Those landlords that choose to artificially subsidize communities via suppressed lot rents do not generate sufficient reserves to set aside for inevitable capital improvements to the community’s infrastructure and aesthetics.

Investors should therefore exercise significant care when choosing their Qualified Intermediary because of the critical role the company will play in the administration of their 1031 Exchange transaction.It is extremely important to note that 1031 Exchange Qualified Intermediaries are generally not required to be licensed, regulated, audited or otherwise monitored by any regulatory body.

We'd have to cash-flow $1,300/mo over that period to make that much, which isn't happening.This is all to say that if you are in a market that has good long-term appreciation potential, then whatever rental model you choose is simply a way to make a little money while you hold the property for larger long-term gains.I'll let others chime in on your specific area.

@Eric Miller Choosing between one $600k property at 70% LTV and four $300k properties at 95% LTV depends on your goals, risk tolerance, and management capacity.

This benefit allows the owner’s estate or heirs to receive the property at a new, higher basis—reducing capital gains taxes if they choose to sell the property after inheriting it.In short, partial disposition allows tax deductions for retired property components during ownership, while the death step-up basis resets the property’s depreciated value, providing tax relief for heirs.

Keep it simple, paint and carpet, buy a good house in a quality area.

We both know the numbers you used (mostly that 1000% return number) aren't practical, but humoring them paints an interesting picture about the financial advantage of leverage.

We fixed everything in the first 3-5 weeks, plus paint, carpet, landscaping, then rented it out.

Ultimately, you should choose the option that best supports your financial well-being while striving to keep the relationship amicable.

Owners who choose this option would likely be those who:1.