Quote from @Michael Daley: This is why I'm thinking more about taking the STR route until I can refi with a better interest rate. 2 units (2/1) in a good area at $1.3 with some ability to update and has a garage or ADU capability would work if we can get $5000 per month for each unit.$10k STR rent on $1.3m property at 80% LTV  will be negative cash flow when properly allocating for all the expenses.  

Hey Minnina, happy you're making the decision to go the rental route!

If you decide to go this route, you could inform the tenants that they will be responsible for a separate monthly utilities charge in addition to their rent.

Hey Thomas - I've seen many go the LTR route. 

But, investing directly without knowledge is commonly a route to losing money, too.  

Furnished MTR is another route you can go.

I would consult with a 1031 exchange expert on this, as they will provide you with the most accurate knowledge needed to make the best decision (assuming you go that route).Good luck!

With a 1031, you would have to meet stricter timelines (identify a new property within 45 days and close within 180 days) and use a qualified intermediary.Recommendation: The 1033 exchange is likely the best route if you’re looking to reinvest and defer capital gains, as it provides more flexibility.This post does not create a CPA-Client relationship.

So I will keep you on mind if I go that route.

Any reason why we wouldn't just go that route and not need any renovation work?