However, the IRS may scrutinize exchanges if the holding period post-transfer is too short (typically 12-24 months recommended).If one partner wants to defer capital gains while the other prefers cash, the deferring partner could reinvest their share into a Qualified Opportunity Zone (QOZ) fund, which can defer and reduce taxable gains if held for at least 10 years.

@Scott Trench - have you considered investing in short term rentals, materially participating, and having the average stay be less than 7 days?

Unfortunately the short and mid term markets are slowing down.

You should reconsider looking for a property zoned for short term stays.

It's a 2 family in Dover, NH just a short drive from UNH. 

If you are going to buy in a lower tier neighborhood, it should be one that has strong fundamentals and a thesis that supports rapid appreciation in a short period of time.

But for a short answer.

Use tools like AirDNA or Mashvisor to provide market data on projected rental income and occupancy rates, and make sure your lender works with appraisers familiar with short-term rentals.

For most lenders, they wanna see a 12 year lease in order to count the income to help your debt income ratio. there are not many lenders that I know of that will include short term or midterm income as part of the income side of your DTI. 

They may justifying paying more by claiming they’re paying the premium for the “business”, but since the “business” and the real property are inseparable the property owner will still benefit from the increased value due to the arbitrager efforts.