There's right around zero chance you'd get in trouble for that since the IRS has much bigger fish to fry. 

This means you'll probably lose at least $10,000 a year.You don't say how much equity you have in the home but I would seriously consider selling it, even if you have to take a loss.

If a property that is worth 5.3 million today at 6% cap approximately, can be bought at 5% interest rate; if the same property I could get at 4.3 millions in 2 years if the market falls, then interest rate possible at 6-7%, my cash on cash may be better but still not significantly better due to the higher interest rate, plus opportunity costs of sitting on capital for 2 years (1.3 million investment earning 1% bank interest instead of 7% COC if invested, loss of tax break depreciation, total loss may equal 200k loss in profit), plus increase in the rents and some value add could increase the cap from current 6 to 6.7 or so in 2 years.Unless, I find another source that can give me a COC of 7%, sitting on cash for 1.5-2 yrs for market to correct may itself be a loss.

the bigger the deals it weeds out those that cant execute but make no mistake there is a lot of money out there and many many folks who can execute.. they just are probably not on BP  LOL.. so in your area 320 acres could be one or two lots or it can be a subdivision.. and if it has subdivision potential i am sure most of the bigger players there know about it and what can be done with it.. now you maybe able to do some of the due diligence that i have to hire and pay folks for ..

I really don't like Duplex C very much, and okay with selling it as long as I don't have a big tax loss/overall loss due to the 1031 exchange. 

@Trevor McCloskeyWelcome to Bigger Pockets.

Would you rent just pads or make $900k investment into owning Mobil homes and getting bigger renturns?

If your looking to go bigger, I would look into a syndication model. 

Hey Bigger Pockets!

It seems that a lease purchase with stipulations to make the buyer responsible for repairs would be more advantageous than renting because the property owner wouldn’t be responsible for any repairs, they get a bigger up front payment from the sale of the option (which will help with vacancies) and if the buyer exercises the option at the end that’s a win too.