However, you could convert the rental property into your primary residence, live there for at least two years, and qualify for the Section 121 exclusion to avoid up to $250K (single) or $500K (married) in capital gains, though depreciation recapture remains taxable.

I also value the planning element, especially if I’ll be setting up a trust, so now I feel torn about which option is best.EAs aren't going to focus on auditing and planning.

Hello Chris, I did get others that were in the area but I put the house up for sale 😕 due to this problem. 

In fact, I have a couple buyers right now looking in this area for a house hack potentially just like this set up.  

This would give you up to 180 days to sell your relinquished properties and not have to stress the identification time frames.

my ex tenant was picked up for smoking pot - I wasn’t held liable for that. 

@Marc ChaleIf they want to clear it up- why get a third party collector - compute what they owe and send it to them.

Just be sure to account for holding costs, which can add up quickly.Another option—since you're well-positioned in Austin—could be bridge financing or hard money lending for your flip.

Under contract, just needs to close.

Consider saving the 40-60k and maybe just spend a little extra on cozying up the place and making it more attractive.