We have done deals for clients before where we get a large kick back at closing to cover deferred maintenance.

However, you should be careful with how soon you move into the property after completing the exchange; otherwise, you risk invalidating the exchange.A 1031 is deferring the taxes - not eliminating them (putting aside proper estate planning and you holding the property until you die).Accurately working through these types of scenarios can be tricky because of all the moving parts - ie, recapturing depreciation, adjusting the cost basis, whether you owned the property prior to 2009, etc.However, if we generalize this and ignore the tricky parts for the time being, you could have this scenario play out like this:- buy property A in 2010 for $500k- sell property A in 2020 for $1M and exchange into property B (deferring $500k of profit)- rent property B for 1 yr and then move into it as primary residence- sell property B for $1.5M in 2030 (another $500k of profit)To figure out your taxes, you'd be looking at:- a total of $1M in capital gains ($500k from sale of prop A and $500k from sale of prop B)- you owned props A and B for a total of 20 yrs - 9 of which were as your primary residence (45%)- this limits your potential primary residence exclusion to $450k ($1M x .45)- since you're married filing jointly, you can exclude the entire $450k (but not the max of $500k)- the remaining $550k would be treated as long term cap gainsAgain, this is very generalized and not meant to be an accurate calculation, but hopefully gives you an idea of how the numbers might work out.Best advice any of us can give you here = consult with your tax professional :)Good luck,- Brian

And others on the forum have been helpful to point out that many of those have deferred maintenance and high potential CAPEX costs Thanks again to both of you.

Property may be subject to probate as father passed away but children are slobs and house is falling apart due to deferred maintenance.

Roth’s are great hedges for tax uncertainty but I prefer to save 30% on taxes now and let the magic of tax-deferred compound interest work to my favor.  

I'm not sure how dated it is, but "Deals on Wheels" by Lonnie Scruggs would be a good starting place (you can read it for free here: http://www.jsnobles.com/uploads/7/0/9/4/7094813/how_to_buy_sell__finance_used_mobile_homes_for_big_profits_and_cash_flow.pdf)Though to the viability of your cashflow expectations, I'd have to defer to someone else in this forum.

I made some capital gains in December 2019 and I was wondering if I can invest these gains in an opportunity fund (Fundrise opportunity fund) in January 2020 and still defer gains for the tax year 2019.

Address deferred maintenance, get professional pics, put out quality marketing, and screen the tenants.  

@Jacob RitterCalled deferred interest.

And part of those proceeds are the deferred tax.