And I have to pay capital gain taxes, if I decide to sell since I’ve lived in more than 2 years?

@Robert SutherlandDid Preferred Trust tell you that if you used an IRA LLC to have the IRA own a business, that the gains would be subject to UBIT tax rates of up to 39.6% federal?

  ( I dont mind renting out units, I rented my home that I owned out during college to pay my tuition.)The question is, would I be better suited selling the townhome at 160,000 to pay for the new property and have cash left over for construction and renovation OR  do I take out on the townhouse, hold it and charge around $1500 a month for rent and use that income to pay off both.as far as 1031 I could do that, you mean selling and using the funds to defer all gains on taxes?

We may have to move out of SF but would like to avoid that if we can.I've considered the following:1) Stay in our current 2bed/2bath as long as possible (likely 5 years max) or until the market softens2) Sell now, rent in SF, avoid taxes and free up gains for other investments and wait for a market to soften in SF or move out of the city in a couple of years if it doesn't.3) We'd love to keep current home as rental after buying new home.

How are capital gains handled during the transfer? 

For example, if the proposed project estimation total is 90K, can a group of investors invest 30K each, each gaining their fixed interest on it based on their contribution?

So longer term, NYC will be valuable unless there is a major technological revolution and NYC goes the way of a Detroit which was the worlds automobile capital at one time. 

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As a 20 year old, you have the most valuable asset, which is time. 

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