I'm thinking to separate that from the triplex and sell it as a standalone to basically get my initial investment back.

Do you have a separate contract to agree to this part of your services?

Are the utilities and heat separated into two units?

This would create some additional capital for our LLC with having a guaranteed buyer, eliminate realtor fees, holding costs, etc, but we would also be able to take advantage of individual mortgage terms - 30 year amortization, 3.5%, for instance, with a separate bank that we have little exposure. 

Control, profit sharing and liability are among many of the other factors that separate them as well.That being said, its based on raising money from the "public".

Each unit is 2 bed/2.5 bath, approx 1100 sq ft, with separate water meters, small fenced-in front and back patios, new water heaters/HVACs, new plumbing, new electrical, new roof, new appliances, etc. 

@James E.Seems like you are doing the work of your CPA...I hope you are getting a discount on his services by doing your own research.In short - there are time limits of being able to take advantage of section 121 exclusion...however there are exceptions to the time limits in which case you may be able to claim partial exclusion.Your situation is unique since you and your wife both appear to have separate houses that qualified for section 121.

It’s important to note that this timeline is separate from the eviction timeline of June 12.Regarding tenant requests for maintenance, we are addressing emergency, health & safety issues to avoid causing you potential liability issues and protect your asset.

Thank you for the reply’s.Currently have 2 Boilers, as well as the basement heater pictured.3 Water heaters2 gas meters2 100amp electrical panelsCurrently 2nd Floor, Basement and Garage are all on same electric and gas.Considering separating the 2nd floor and basement by adding 3rd gas meter for basement heater and eventual stove, add 3rd meter and 100amp electrical panel.This way I’ll only pay for 1 Unit electrical (Unit, Laundry, Garage, Common areas).

As @Holly Kaufman noted, a SF with garage unit or mother-daughter is much better so the spaces can be separated.