Consult with experts, such as real estate agents, financial advisors, lawyers, and tax professionals, to help you navigate the investment process and meet all legal and financial obligations.Good luck!

The initial returns are lower on paper in better locations (lower cap rate, less initial cashflow according to the magic spreadsheet), but the overall returns in reality are much better including all the different ways people make money in real estate (gained equity through natural and forced appreciation, principle pay-down, increasing rents= higher cash flow when looking at the big picture if you buy and hold, depreciation tax benefits, plus way less of the big profit killers like turnover, non-paying tenants, property damage and theft, dealing with bad contractors because good ones don’t choose to work in bad areas either, etc.). 

I don't make much money from a tax return stand point but I don't think it'd affect my DTI since I'd be using potential income and I don't have debt.

Ina, there are several lenders servicing the NYC multi family space that pretty loose about income and tax returns as long as the property shows decent rental income. 

As Chris mentioned it works the same, however, the tax credits and incentives may be different for a primary home vs a rental.

I'm also pretty sure that 2 of the tenants are getting government assistance and I think they are longer term tenants.After taxes, insurance and with the owner paying for heat and water the owner claims it is netting $20,000 per year.

I paid him several thousands of $ - well above the $600 tax threshold.

If not the swap, the non-profit might instead offer as much as 1.25x the value in cash, in which case I might consider selling or could just keep it for now (taxes are virtually zero).Does anyone have insight or suggestions on commercial real estate that could help inform this decision?

And are there additional taxes that Arlington County levies on AirBNB operators? 

Why MIS is so unpopular method to defer tax??