Please also direct any future correspondence to me in writing.Sincerely,Ambulance chaser (name changed to protect the guilty)Here's my response:Dear Ambulance Chaser,Our lease agreement allows you the use of the property at 123 Straight St in exchange for rent.

It's always enriching to exchange knowledge and insights with fellow professionals in the field.Best,Jim Vani

It will be nice to connect with other Newbie investors in the area and exchange plans and ideas.

One of the terrible pieces of advice I received was from 2 people who suggested that I sell my California SFH rental (with lots of equity) to "cash flow" more and "acquire more doors" by doing a 1031 exchange into an apartment complex OOS or buy multiple SFHs/duplexes OOS.

Question 1) does the depreciation recapture follow thru the 1032 exchange where you still keep track 50k worth of recapture?

Under IRS rules (see IRS Publication 925 on Passive Activity and At-Risk Rules), when you sell a rental property, all suspended passive losses from that property and the rest of your portfolio become deductible in the year of the sale, provided you fully dispose of the activity and it is not exchanged for another property (like in a 1031 exchange).If you have $100K in losses from your entire portfolio, those should be applied to the capital gain from the sale of the property—not just the $50K from the specific property being sold. 

Since each taxing municipality has different mill rates (property tax rates) a 1031 exchange into a state or municipality within a state where the mill rate is lower can help. 

If the property is bleeding money every year from repairs, maintenance, or turn over you'll never get ahead.You can tap equity with a HELOC (challenging right now), cash-out refinance into a new loan (much higher rates), 1031 exchange, or sell (tax hit) but the numbers and property condition need to guide this decision.

I would try and do a 1031 exchange.   

For financing, we were able to just do a 1031 exchange from a duplex we sold and make up the difference in cash.