Go search the topic "Lifestyle Asset University" here on Bigger Pockets and you will see a longer thread with a lot of opinions (most are not members) but still worth a read as there are a half a dozen paid members from our group who have commented on that thread.We were formerly called Lifestyle Asset University, but I didn't realize that you couldn't use the word University in your company name here in Utah so we changed our name to Vodyssey. 

.- Unrecaptured falls under section 1250 and is treated as ordinary gains and capped at 25%- My capital gain from appreciation and improvements under section 1231 was treated as a long term capital gain since I owned both assets over a year.Hope this helps.

The asset class will be dependant on how much capital you have availabile and how much renovations you plan to perform. 2) Is there an income gap between going after 2 units as opposed to 4?

@Tayvion Payton, my first question is:Why do you believe multifamily offers better value for the time spent managing than other asset classes?

I would focus on improving your credit and obtaining a more stable income so that conventional financing is an option. 

Additionally, most of the costs to make an asset ready for it's intended business use are capitalized and part of the cost of the asset. 

boils down to real estate is a long play and people have tried to turn it into a liquid asset which it is not.

Occasionally if they have other assets maybe she can keep the equity of the house and he gets to keep his full 401k or something like that.   

It depends if you need or want the money out or want an asset that will bring in income, especially since you own it cash.

Take title in a separate unrelated  LLC,  where the only asset is the upset tax lein (SPE).