I would be selling it asap.Your only upside is speculating on appreciation but keep in mind you will need to supplement your tenants rent to make it work.$470 K in equity is costing you lost opportunity income of $3900/month (10% value).

If you have high earned income and can funnel some of the extra money into your passive real estate business to make repairs etc that supplements the passive cash flow, can you still write these expense of as business deductions, even though the money came from your earned income?

We have requested better info about why this is and expect that info today.Hi Anna,This doesn't seem like the deal that I would want to test if this is supposed to supplement your retirement income along with the long commute from the airport to the area. 

One thing to think about is that if you're contemplating doing a 1031 and buying a $500K investment and then converting that into your primary you will probably make even less than you are now on the investment house in the interim because you'll be trying to get investment cash flow out of a property that isn't best suited for investment use.It can certainly work but I sense a lot of other concerns than just the desire for a $500K primary residence.A lot depends on your geography but one option would be to do the 1031 and supplement with cash from the sale of your primary and purchase $500K of investment property free and clear. 

As long as family is living in it and you are supplementing their rent just consider it a gift to them. 

He may be willing to reduce the price by RE agent costs that he would incur with a traditional sale but a bigger discount than that would basically be a gift.Someone that does not have the capital to purchase a SFR in San Diego I would think is unlikely to have the capital to supplement negative cash flow from owning the SFR. 

I talked to one homeowner that got $30k cash at closing that was supposed to help supplement payments--this is in addition to 100% financing and all closing costs rolled into the loan.

I hired a Personal Trainer and realize that the gym is expensive, food is expensive, supplements are expensive just like anything else you do it's expensive and it's an investment on your body, personality, and how you feel and make people feel around you.

I choose to buy books and tapes bc i find it supplements what i read here.

I'm a lot smaller scale than a lot of the people on here, and I rely on other work to supplement my income.