In order to have long-term capital gains treatment, outside of inheritance situations, you must have owned the property for at least 1 year. 

., Without documentation that the property has been held for investment it would not qualify for 1031 treatment. 

Hang a curved shower rod, and a coordinating shower curtain so the tub doesn't stick out like a sore thumb.Happy renting!

income, revenue to the state/county, these properties are less likely to be eye sores and can/will help drive up property values for neighbors (catch 22 here)...etc.i live in rural area on Maui and have seen my share of legal and illegal VRs pop up...i don't really have a dog in this fight either way, but would probably like to dabble in this market as well should the rules/laws change...right now the process here on Maui is just too cumbersome (probably that way to make it unattractive) to become a legal VR property.I do wish you luck and ask that you post back with your findings/results for the other Hawaii folks!

Even the most well documented exception in the special treatment of one borrower over another is going to get the lender fined or worse for not applying that same exact treatment to all borrowers.

So I get the worst of both worlds treatment. 

He gave me the same treatment.

P2P income tax rates are higher, and treatment of losses is less favorable. 

When I was younger, I had promotions and job re-location, and that's a sore point for me if the landlord grabs my raise for having to move to a better job.

An LLC is established by state statute, for federal taxes you'll be treated as a disregarded entity (if you're the sole member) or if you have multiple members you'd be treated as a partnership, or you can elect S or C corp treatment.