With the right due diligence, this could be a valuable investment, but only if you’re prepared for the legal and logistical hurdles.Good luck and blessings!

So there might not be enough gain to need a 1031 exchange.If there is enough gain to justify the 1031 exchange then simply treat your replacement property as you would any other investment like @Daniel Osman said. 

Is there any creative way to avoid/reduce capital gains tax on the sale ?

However, if your business owns real estate, that portion of the sale may qualify for a 1031 exchange, allowing you to defer capital gains taxes by reinvesting in another like-kind property.

Connecting with experienced investors or joining local real estate groups can provide valuable insights and help you avoid costly mistakes.

Whether you’re just starting or looking to scale your portfolio, a coaching program can provide valuable guidance—but it’s not without its downsides.

As you gain some experience, your value proposition to others increases, which will then make it easier to raise money for your own deals.

I find my time is more valuable than doing taxes for a few days.

I understand it can be harder to gain experience with larger multifamily properties compared to single-family homes or duplexes, where someone might complete 5 deals in 1-2 years.

However, the depreciation claimed while the property was a rental must be accounted for upon the future sale of the personal residence, which could increase your capital gains tax liability.The adjusted basis of the property (original cost minus depreciation) will be used to calculate gains or losses at the time of sale.