Last month, his daughter, son-in-law, and their five kids aged approx. 12-1 yr old moved in from out of state temporarily while they look for a more permanent place.The lease prohibits guests for more than 30 days without my permission.

So you can sell now and you have until the end of the year to decided whether to put it into an OZ investment.Also, I would say a lot depends on whether you're looking for another active investment you would manage or a more passive one.

I have found two properties that fit the criteria but are located in a more run down area of town than where we are currently living.

This leaves bridge as a more viable option than perhaps CMBS or recourse bank debt.As to the take-out risk:  Sponsors (and their investors) should be evaluating how much "lift" the value-add improvements bring, both from a cash flow perspective and from a valuation perspective. 

Forgot to add:You can have your realtor calculate your new property tax amount at the current purchase price for a more exact number for your area.

a more buy and hold or Brrrr strategy is slower but many times you'll actually make more money because you can mitigate the taxes totally with a 1031.

@Joshua Levasseur When you are in a more competitive market, you need to be more creative with your lists.You should consider mailing to people who aren’t in every other investor’s sites.

I am trying to understand how to account for these items, in a more creative way to the appraiser 

I enjoyed playing SimCity since it first released on the SNES as well as a more intricate game called Cities: Skylines.

We will be out of the country for an undetermined amount of time, so I would prefer a more passive route.