Doesn't look like you'd have to sell. 

It doesn't mean he actually installed it at your property, but still good to have. 

But if the council doesn't change, then the worst scenario I see is that they decide to cap the number or put a moratorium on new licenses but even then, the council appears to favor grandfathering in those who operated in good faith under the existing law.

Appreciate the tips there @Dmitriy Fomichenko the podcast is actually what lead me here.Edit - tagging someone doesn't work so well from my mobile device!

Doesn't sound like you have a motivated seller on your hands which is critical to getting a good deal.

The conversation usually doesn't go much further than that ...

But sometimes it can be real estate that doesn't exactly look like real estate. 

I don't want to seem like a bad landlord or like i don't have his best interest at heart but he simple doesn't understand that this is out of my hands. 

If you and your wife file separate returns that is a whole different matterState vs fed conventions can get messy but doesn't matter what state it is in for purposes of 1031.  1031 is a federal statute and community property is a state convention. 

It doesn’t matter to me if other people are just barely covering their operating expenses.