The exchange entity must remain the same, meaning the ADU ownership should mirror that of the relinquished property.Construction exchanges require improvements to be completed within 180 days, and the total value must match or exceed the property being sold.

At the beginning of 2023, we see rates in the mid 3% range, reflecting in development starts slowing in 2023 and 2024 resulting in much lower net deliveries in 2025 and onward as rates continue to remain elevated and bank financing requirements remain tight.As you can see, this has put downward pressure on Vacancy rates, since the lower supply of oncoming units coupled with a continued expected population growth in the D.C.

I am from Iowa so our goal would be to use it in the winter months (dec,jan,fab) and try and break even off the income from the remaining months. 

If what we are feeling is accurate, the January data should show substantial increase in buyer demand.Jan 1, 2020 to Jan 1, 2025 InventoryWhile interest rates remain high, the demand from buyers is still strong.

Private money brokers can add value by thoroughly vetting lending opportunities and prioritizing client success over commissions.Stay Vigilant:Protect yourself and your clients by remaining vigilant and conducting comprehensive due diligence in all lending activities.

So a loss of about 55k We did a lease to own option so I could immediately take over expenses but keep their primary resident loan and interest rate.We agreed to a deal which would cover all their expenses at closing, their remaining loan balance, and $45,000.

Yet they remain!

Yes this leaves more money in the deal but it reduces my risk and ensures I can remain profitable in a down market. 

These regions offer affordable prices for most investors, with homes that are turnkey—either newly constructed or fully renovated, tenant-ready, and with systems that still have 10+ years of life remaining.

Your point about it being more attractive remains valid, however.