You can invest more than the capital gain realized if you wish, but the interest will be bifurcated solely for 1400Z-2 purposes and only the interest stemming from the qualifying investment will be eligible for the OZ tax benefits.All capital gain: LT cap gains, ST cap gains, 1250 gain, and collectibles gain are eligible for qualified treatment under 1400Z-2.If you are thinking about a QOF investment, I'd advise you to onboard a competent tax professional as an external partner on your team. 

We do this because we often are the project managers on rehabs where we collect fees and then we are the property managers thereafter. 

I did already collect a 1.5 month security deposit. the most I can legally collect in NJI am a bit pissed off that I was lied to, but at this time I have no interest in evicting her since she pays on time and I know I would lose at lease 1 months rent while looking for another tenant.

After re-hab when the property manager is collecting rents how am I supposed to handle that?

I feel like I would need to be more hands on with my investments & being so far would be tough to manage Plummer’s unclog toilets Landscapers cut grass Investors...don’t involve feeling they don’t do any of the above they invest and collect their money.Do you what to be an investor or a homeowner?

It would be criminal if he wasn’t actually collecting the higher rent, but it sounds like he would.

You may look at selling some partials (12-36 months) to collect some cash and do what you need to do.  

Management Fee (paid monthly):8% of collected rent; minimum fee of $60/unitNew Tenant Placement Fee (as a percentage of one months rent, paid after first month):12 Month Lease - 60%, minimum of $45024 Month Lease - 80%, minimum of $60036 Month Lease - 100%, minimum of $750

Are you collecting rents?

Figure how many thousands of dollars you've collected in rent over the years and weigh that against the cleaning costs and the reliability of the tenant when it comes to paying on time.In a hot market like where I live now, especially when good deals are very hard to find, I would absolutely focus my efforts on fixing up a property like that, raising rent, and getting cleaner tenants.