Well...I would say yes once occupied, or at least in liveable condition...appliances should not contribute...What is the land use code on the property...is it already listed as a rooming house or 4-19 unit with the auditor...and why are you seeking a commercial loan...non-recourse?

Have a house that is currently rented that just came available near me details are rented for $700 a month which is on the lower price for the area, they are asking 50k and according to the auditor site it's valued close to 70k just for details I'm wondering what would be a good deal to go for and what would be good terms if I could get them to do owner financing?

Maybe it's interpreted that she's living with you for free and the "rent payments" are gifts.Either way a junior auditor at the IRS could tear this 1031 apart before he's even had his morning coffee if you go through with it.May be advisable that you and your girlfriend rent a property from a third-party or buy another primary, rent this property to an unrelated individual, then 1031.

These strategies require professional guidance, unless you prefer to receive such guidance after the fact from an IRS auditor.

@Ryan Lucht, I'm no tax expert by any stretch of the imagination (before you judge my being a CPA, I'm an auditor :) - anyway, I'm fairly certain that you can only 1031 exchange a property to be used for investment purposes.

I pay a little more in tax, but I also can deduct certain other expenses that offset that.As a Tax Auditor (my day job), I hate having to "follow the money" in an audit, especially if the Company I'm auditing doesn't provide bank statements to review with cancelled checks for ALL of the bank accounts.

A provider who will be there to help respond to an IRS audit or compliance check is also recommended.

About a week for the auditor to inform the judge.

Most local landlords to do not make more than 1 local inspection per year, so IRS auditor wants to know you why are so motivated to spend 10 days a year there.

But being so, I was extremely impressed with the class of auditors, insurance, etc...