@Patrick FricchioneIRC section 121(d) now sets a specific holding period when a 1031 replacement property converts to a principal residence.

This notice contains the homeowner's name, auction date and in some cases a description of the property/principal loan balance. 

While mortgage+ taxes may be similar to rent, you are not paying down the principal early on in the mortgage and closing costs on either end are likely to add up. 

Most nationwide QIs have attornies and accountans as principals. 

Smith, RA - Principal Architect at Architect Owl PLLC (Licensed in NY & CT)

Smith, RA - Principal Architect at Architect Owl PLLC (Licensed in NY & CT)  

Smith, RA - Principal Architect at Architect Owl PLLC (Licensed in NY & CT)

Sometimes it might make sense to just pay the penalties and walk away, but while $1.5 million isn't chicken feed it isn't "live off the principal till I die" either.

I hear ya but you need appreciation to offset the massive amount of rehab you have to do on a house thats been used as a rental over the years .. if it does not go up your going to lose principal and cut into cash flow.. got to have both to have a good IRR bottom line.. unless you Never ever sell which is quite rare actually. 

I know a principal at a syndication with over $2B in assets.