Partial 1031 Exchange: If you back out of the condo deal, you can still defer taxes on the portion already reinvested (the vacation rental) and pay capital gains tax only on the unused portion ("boot").3.

The transition is going to be key... the less confused the tenants are, the better of a start you will have in gaining their trust moving forward. 

@Eugene Lubman Selling the property to your parents allows them to generate passive income while enabling you to perform a 1031 exchange to defer capital gains taxes.

This is like when a seller says they don't want to pay capital gains so they want 200k on the contract and 200k in a bag.

(And it also this a kick in the butt to find a financial planner, so I will be responsible and do that as well :))Return on Equity equation is adding up your returns (so actual cash flow and the gain on equity for one year) and divide that by your current equity.

Mine is to network and also to gain knowledge.

@Andrew MaturanaTo gain a competitive edge in the hospitality industry, explore creative ventures, Triple Net investments, house hacking, syndications, joint ventures, and leverage business acumen, networking, and resources.Good Luck!

I am also a part of Bill Faeth's Inner Circle as of this year and have gained a ton of insight of things we can do to run our business more efficiently. 

Your old carpet did not become more valuable over the seven years you owned the property, even if you are selling for a gain.

However, once you start renting it out, those renovation expenses could be added to your cost basis, potentially lowering capital gains taxes when you sell.