Beware that combining personal residence exclusion with 1031 is highly complicated, especially in your case.3.

It can get complicated.

When I started out, we only bought notes in non judicial foreclosure states with no post sale redemption periods.

This will require my strategy to be adjusted, but I can still make it work.With regard to LLCs, I agree, it does seem complicated and costly. 

I'm sure we could work it out with proper screening, but it sounds like it's more complicated then it might be worth.Brian Gerlach, I don't really need to maximize a cash return so it seems a LTR would be more fitting.

We didnt want to mess with structuring, terms, and all that stuff that sounds complicated with other money sources. 

I avoid complicated deal structures because it gives the syndicator opportunity to shift a higher portion of the profits to themselves and away from the limited partners. 

Having escrow pay invoices to contractors would be a really clean way of doing this -- easy if you've got one GC doing the work... complicated if you are a DIY remodeler. 

The property may also be owned by the government and may be used as something like a 'hidden' shelter for abuse victims, safe house for the judicial system, undercover law enforcement operation of some sort, etc.

Tax is one area that can get complicated very quickly and the liabilities can be significant.