There is something illegal about it because Federal laws trump state laws and the Feds don't recognize medical marijuana laws.DEA states it's a Schedule I substance with no currently accepted medical use in treatment in the United States.The DEA doesn't want a casual user they only want the growers and trafficker of larger quantities of pot.

got it. there are IRS publications that I went thruhttp://www.irs.gov/publications/p527/ch02.html#en_US_2010_publink1000219096In my case the difference in accounting treatment is so immaterial I am not sure they would even want to spend time on it..but who knowslet me asks you what they are asking when the audit actually hits you. do you have to show up with the receipts and a copy of your tax return only?

I will say, with Personal Capital, we were able to visualize many scenarios... say SS is gone by the time we retire, or my husband's pension gets cut by the government, or one of us lose our jobs and we have to live off of 1 income... we could see what the impact of 1 or all would be on our investments.  

I have always maintained the pool myself, but no way I would want to leave that to tenants.Based on some research I think I might be able to rent it for $1600 a month, which leaves a breakdown that looks like this:$1600 per month -$827.56 for mortgage payment - $20 HOA fee - $170 pool maintenance - $99 property mgmt fee - $47.63 lawn treatment = $435.81 net per month.I was thinking of setting up a separate account and funding it with $5000 just to cover any repairs and what not. 

As someone who loves North Carolina and geography, I thought a visual might be helpful for this discussion. 

Would you be able tell me a little about your home, visually walk me through the home if you don't mind."

This is good for giving a visual on where your personal money is going and allows you to sort of relive the spending moment and ask yourself "is that really where I want my money going?"

Again, this is a simplified example but perhaps will give you a visual of how a HML might calculate numbers.

If it's the tenant, they are responsible for treatment costs.  

If they put the 1031 into something with predictable passive cash flow net of expenses then you have predictable income with which to leverage your construction business but at the same time they keep their 1031tax deferral intact.A big key to this would be for them to invest in debt free instruments that qualify for 1031 treatment but minimize risk and concentrate the risk into the endeavor with you.