Exactly it - it is that process of moving the property from a corporation to a pass through entity that will trigger that gain, and it is NOT the conversion of that entity for state law purposes to an LLC that triggers the gain.While you might think of this wholly owned S-Corp as "just you", for tax purposes it is entirely separate from you.   

The early days padsplits operations process tried to run uusing hotel tenancy laws, that has fallen by the wayside due to magistrate court/fitting into a standard eviction process via magistrate court. 

There is no way I am going to pursue making a purchase if I have no idea how hard it will be to sell it, what I might earn, and what process to follow.

-Ant Ant,Really appreciate this response and it gives me confidence that my thought process isn't off. 

I'm just going through this process with Lower.com.

If all they need to do is walk in, fill out a form and walk out 10 minutes later with a permit in hand, then I wouldn't pay much more than the cost of the actual permit; if it's a process where they need to spend several hours waiting at the permit department, negotiating with inspectors, etc., then that's more time investment that you should be helping cover.

Analogize to how a federal law can lay out a process for protecting or enforcing a Constitutional right but can't change the right.  

So if you start that process around the holidays you would probably be ready to move right on schedule for Jul.How long have you lived in your current rental?

Investing locally is a good idea starting out, you're going to be most knowledgeable about your local market and able to oversee every step of the process. 

Also, assembling your Core 4 Real Estate Team is crucial for navigating the process effectively.