As long as you hold the new properties, or as long as anytime you sell you do another 1031 you'll not have to recapture depreciation and when you die your heirs will get at the stepped up basis so the tax goes away.If your calculations on gain are correct and the information on your bracket is correct I'd say you're pretty close on your tax liability.

Completing a 1031 Exchange allows you to defer that tax and depreciation liability and invest in another rental property or something like a DST (Delaware Statutory Trust), if you're an accredited investor.

So whether you are renting to families, individuals or businesses, it's important as a property owner to require your tenants carry liability insurance.

I wonder how the house will effect my lending limit on the multifamily.

Hi Friends-I'm searching for a lawyer with knowledge of real estate to guide us through our first few houses for guidance to ensure we are covering ourselves well for any liabilities. (1 SFH rental and an airbnb garage apartment in our primary home).

I can sell it to him out-right and he can mortgage with 20% down but with my [limited] understanding of lease options I thought I might be able to approach him saying he could buy the option with 10% down and work out the other terms.As Brendon mentioned, it sounds like it might just be more hassle than it's worth and I don't want to put him off trying to force the L/O. 

I guess the word is scaling up..I will do commercial loans until the banks tell me i cant do no mas..Mixed use gotta watch out with insurance, Liability depending whats in the commercial space..but just to get your beak wet you can do 3 to 4 unitsbut if your gut instincts tells you to go higher why not. you only live once.. 

One wonderful property I have that's forty minutes away from where I wake up every morning is at the outer limit of my 'zone.

As far as proof of funds, do you have a high credit card limit?  

My agent asked me to put myself in the new owners shoes and advised that I consider helping out with damage costs and come up with agreement that I am not responsible for any future liabilities at that house.