If pref equity's original capital contribution is returned in full, common equity may or may not have their original capital contribution returned in full.

Repairs made after conversion may be deductible, while capital improvements can be depreciated over 27.5 years or bonus depreciate depreciated.

So yes you can exchange it to save capital gains taxes on $266k plus 19 years of depreciation recapture.

Part of my calculations does figure in vacancy, repairs, and capital expenses.  

Your development deal will look much like a flip in the eyes of the IRS since it is 6-9 months as well you'll have the short-term side of taxes, not the capital gains taxing on it.  

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

They told my attorney that they were trying to obtain “seed” capital (from me) to finance the lawsuit against their true targets.  

If I assume a 1.25 ratio, this scenario would allow me recover more capital than a conventional mortgage.Please let me know your thoughts.

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

If you lived in the property for 2 out of the last five years then you wouldn’t pay capital gains up to a certain amount.