When you sell that property you can allocate the prorated amount of the sale attributed to your primary residence.  

We make decent money and I want to know how to best allocate the few resources we have.  

I allocate a good chuck of my assets to direct investments of my own rather than through my developer contacts to help mitigate that risk (plus I want control).On a side note, when you have a windfall like this, you may want to reconsider your overall asset allocation and also what assets you hold in taxable versus non taxable accounts.  

While it is great to be so determined to get involved with RE at such a young age, I think first and foremost you need to focus on how to preserve that settlement you are potentially getting.You have your whole life ahead of you, you may want to seek the guidence of a financial advisor to maybe allocate a portion of that money into the stock market into some dividend paying high quality blue chip stocks that over a long period of time can give you a great return on your money as well.

You may not be able just to send the money back, commercial loans may not have rights of recession and you could incur fees since they held up their end of the allocation, providing funds.

The gain would be allocated between the primary residence and the investment usage generally by square footage to determine how much gain would qualify for the 121 Exclusion and could be deferred via the 1031 Exchange.

Bryan, economic growth is hugely impacted by inefficient resource allocation.

Our job is to allocate capital in the best possible manner, and that means earning the highest return over a period of time on that capital at an acceptable level of risk.To maximize your annual profits, all you need to do is to maximize your annualized return.

., it costs $5000 to repair a trashing, and there's a 5% chance of a unit getting trashed per year, therefore you need to allocate $1000/year for unit trashing.

I saw on the forum a PDF that showed how the 50% of expenses was allocated, but I can not seem to find it using the search feature and was wondering if someone knows what I am talking about.