To be clear, when you sell the property you later move into, the 121 exclusion would only apply to, or part of, the gain on That property.....whatever gains/depreciation recapture deferred in the 1031, attributed to that property would still be due.

I attribute this to it now being off season and inventory is sitting there and very few buyers on the island.Have any of you invested in a similar environment?

One of the C's of credit is Character and it looks like they don't have good it.  

There is NO WAY a prospective tenant can sue me for discrimination, which will not happen in my apts as I put in my own tenants.In my apts Here in Brooklyn, I have the world of all kinds of minorities and status, each of them I know very well and will stand up for my Character in Court.The diversity in my buildings are incredible and represents just about everyone.Also, because I provide them with great service and speak with them on occasions, anyone coming to my building who claims discrimination will be proven to be false as I probably already have that protected class in my building.The only commonality is that all the tenants meet a Qualification criteria of Credit, Income and other non-discriminatory criteria.BUT, I know that's not LL.

What types of attributes does your list consist of?

@Michael LiddicoatThe seller can accept seller financing(installment plan).This would allow the seller to report gain and pay taxes over a period of time instead of all at once.The downside for this is that gain attributable to depreciation recapture is taxed upon year of sale.An alternative would be to do a 1031 exchange.

Obviously, this could be attributed to higher competition etc, but I believe it's that people have move online to find out more about who they are considering doing business with.  

It's just too easy to get into the business, too much competition, not enough vetting from customers and , as a former contractor I can say this.....it CAN sometimes attract less than desirable characters.

I assume whether the first floor (the other 2 floors are residential apartments) or the building as a whole is considered class B or A is largely based on opinion or are there specific attributes that make a bldg class A rather than B? 

Is that something you put in your lease, that in the event of an eviction, all costs will be attributed to tenant?