., managing bookings or tenant interactions), which could subject it to self-employment tax.This post does not create a CPA-Client relationship.

If I read the story correctly, your client did not report rental income.

This post does not create a CPA-Client relationship.

While not mandatory, a specialized accountant can reduce errors and provide significant tax-saving strategies tailored to your situation.This post does not create a CPA-Client relationship.

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

I just closed an off-market 8 plex for a client.

@Matt SchreiberWe always joke, "if you pay cash, everything cash flows"....There are still opportunities out there and we've been able to get way off of asking for clients here in Reno, NV with the right seller and right offer. 

My clients and I are experiencing cash flow positive properties, and we are definitely a landlord-friendly state.

I got her money back of course, I learned that being the nice guy (which I am known for) has to protect their clients interest at all costs and you have to really use your head and figure out how to get it done while staying the nice guy.  

My client recently purchased a 3/2 single family house for $160k that was near turnkey and already rented at $1900/month and in a very desirable residential neighborhood!