This property will require a pool to fully optimize its earning potential, and I've already factored that into my calculations.

Second, for you as a taxpayer you need to evaluate if your tax situation (e.g. property type, tax profile, material participation, etc.) will allow you to leverage additional losses generate from cost seg to optimize your taxes. 

If managing it yourself feels unsustainable in the long run, hiring a good property manager could give you more peace of mind.Since a 1031 exchange or like-kind replacement doesn’t seem to be a good fit for your current situation, you could consider a HELOC if you need to tap into the equity for other investments without selling the property, although rates are high so this would eat up your cash flow.

Generally a 3-7yr hold is optimal timing.

If you must retain some cash, consult a tax advisor to understand the liability and optimize reporting.

Optimize now to fill the vacancy quickly.Thank you Kyle.

Work with a qualified intermediary and tax advisor to ensure compliance and optimize your strategy.

One of my early properties barely broke even, but after a couple of years, rent hikes and expense optimization turned it into a strong performer.For cash flow benchmarks, I usually aim for $200-$300 per unit, but your situation.. house hacking.. offers unique benefits like reduced living expenses and quicker equity buildup.

Quote from @Devin James: When running numbers on an investment property, I focus more on equity growth than monthly cash flow.Here’s why:If I can acquire a property at a low basis and add significant value, I can: 1) Sell and reinvest elsewhere 2) Cash-out refinance to recapture my investment.

No active projects yet, but I’m gearing up to dive into multifamily properties, ideally 16+ units, with a focus on creative financing and NOI optimization.