On top of this, you are doing your daughter a great service by allowing her to gain real world learning experience managing a rental property - she will learn more valuable lessons from that than the 4 years in college courses!

I graduated college from Mizzou in December of 2017 and have recently gained lots of interest in the real estate market and the potential for future financial independence. 

If I fix house #2, I would gain about 20 grand in sales price, but headaches because I live here now.

It's the perfect time to gain knowledge.

Money can be gained and lost in so many ways... so why not go for something when a person has evaluated the risks and benefits and understands how to minimize risks.

However, generally, if your single-member LLC is created properly and is considered a disregarded entity for IRS and state purposes, the transfer of the 1031 replacement property into the LLC will not cause a problem for the 1031 exchange process or for capital gains consideration.

If your goal is to defer capital gains tax on the sale and use the (as yet) untaxed sales proceeds to buy the business then you can accomplish this with a monetized installment sale.

While there are improvements going on to the E of MLK, how long will it take this area to show gains in appreciation? 

If I sell there's no capital gains tax, if I rent I could get around 1560 a month but it will need a new roof and a/c units.

So I satisfy the “2 out of 5 years” rule that allows the home sales profit from capital gains tax exclusion.I was wondering what documents do I need to submit when filing taxes for 2018.My tax person says that no documents need to be submitted to prove that, and me just claiming It is enough.Looking for second opinion.Thanks,Animesh