If you sell now you get the exemption living there 2/5 years for capital gains but I would assume you loose that if you had to sell in a hurry.  

Now i need to see what the tenant says and figure out the capital gains taxes.

Donald its a great way to gain research, but a horrible way to gain leads.

My reason for this type of deal was to gain additional flipping/rehabbing experience while mitigating the risk with it being a property that we were going to live in.How did you find this deal and how did you negotiate it?

So for syndications the accelerated depreciation would be offsetting qualified dividends rather than ordinary.But since the distributions form a small fraction of the total gains from the syndication (most of the gains are ltcg), chances are high that accelerated depreciation from the next deal will offset a big chunk of ltcg from the exited deal, irrespective of whether the distributions during the hold period were treated as ordinary or qualified dividends.I agree that most people don’t look at depreciation as a loan/subsidy by the govt, maybe because their ego doesn’t allow them to admit that their investment would not produce competitive yields without subsidies or maybe because they don’t understand the entire value chain. 

@Nick Ruffini total return is dividing your total gains( $50k) by your investment ($50k) x 100 for the percentage, so your projected total return in this case is 100%.

However, because I plan to retire and live off passive income within the next 5 years (age 33), I don't like the idea of money sitting in retirement accounts gaining returns that are inferior to what I could get if invested in buy and hold real estate while not being accessible until ~ age 60.

I think a lot of posters think they'll gain more traction if they use the forums instead, but honestly it's just the opposite - the forums are so incredibly busy that only a few threads manage to stay at the top of the feed.

I was thinking the same.Without knowing all the details, and assuming you own your primary residence...I'd consider selling it (you'll pay no taxes on the gains) and then buy a house that you can hack. 

.#1: There Are ALWAYS People Who Want to Defer Capital Gains TaxOne of the main motivators for many Sellers who end up doing Seller Financing is the deferral of capital gains taxes.