Ideally, if you *have* basis in your S-Corporation, you can dissolve it in the same year you distribute, thus you’ll have a cap loss to help alleviate the cap gain.Gain likely won’t be mainly ordinary if the bulk of depreciation is on the 27.5 year or 39 year lives.

I currently live in New York but I am currently exploring the options of investing in a small multifamily property.

@Charanjit Singh I live in the area again and I am familiar with some of the locations and properties.   

I live in Texas and have one primary residence and eligible to get another property in June (1 year mark).

If you notice my posting history I am investigating purchasing my first condo in the next few months and am investigating some potential scenarios.I am looking into living in the unit for a little over 1 year and putting it up for rent either with HCV/Section 8 or finding a tenant through my brokerage(L&F) or other means. 

We live in San Jose and would like to ideally start our first project that is closer to us.

Chances are, the living arrangements and property use is not as it was supposed to be.If the money is good, set a lease with extra provisions for the dope house cleanup when the tenant leaves.You can't charge for the plants, but you can charge for uncommon use of the property.

For the last 5 years, I have been self-performing live-in flips with my wife and two young children.

@Tyrell HenryI'll simplify:Don't start OOSDon't start with hard moneyDon't try a major BRRRRHouse hack or live-in flip insteadhttps://www.biggerpockets.com/blog/live-in-flipGood luck

I had been looking for properties around the area I currently live, but very few make sense in regard to the numbers given the current state of the economy.