It's not going to matter how you allocate that 50K, either way it should be protected from taxes which is the entire point of the 1031.

If you think real estate is something you can get successful at by doing it 2 hours a week, you're going to get frustrated when you don't get anywhere...Allocate enough time, and spend that time focused on what you need to get done.The biggest reason I see part-time investors fail is that they are lazy.

As far as your stock portfolio allocation, why do you not have more in mid cap and growth stocks as well as international ex-US?

The value of the property excluding the land allocation can be depreciated.

As fund managers, it's important to have a historical perspective when it comes to investment strategies and where we allocate our money.

Asset allocation is critical to an "all weather" portfolio.

To know the bottom line of each property - if you are only flipping properties, you will have expenses not allocated to a specific property.

@Logan Allec nailed it with the allocating the expenses between personal and rental.

The confusing part would be, how much of the 38K is allocated to recapture and how much is allocated to LTCG.

Hi Mike, I believe you could purchase a property on which you reside and also have an investment property, but you would have to do a reasonable allocation between the two and two separate sets of accounting.