@Tobi Isaacs this would be better answered by other investors in your market. 

@Sean Anthony to us, this situation is really no different than a nonpaying tenant.We try to work with tenants, as "life happens", while keeping pressure on them by moving forward with the eviction process.

In contrast, mid-term rentals are primarily driven by business necessity.

We just think by taking cash out nontaxed and still cash flowing, while still having tax benefits, seems like a good idea.

Is this too much to ask for or is there a way to make the numbers work as the single family is already discounted by being included in the sale of the apartment building. 

if there is appreciation, but you wouldn’t sell your current home tax free and buy a neighboring home to rent out, (There by raising your cost basis for additional depreciation and lower capital gains tax.) then it probably doesn’t make a good rental property. . 

Another month, another solid report on the housing data, provided by Altos Research.

However, corporate conversions can still trigger taxes, especially if the properties have appreciated significantly.Corporate Spin-Offs (If Eligible) – A Section 355 tax-free spin-off could separate real estate holdings into multiple entities owned by different investors.

But keep in mind if your using money you cant afford to get back then buying action property might not be appropriate for your current endeavors and its better to just buy open market were you can do proper due diligence and know you have a build-able site.

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