In my view they made the correct decision and if you spent significant time recovering this cost, well I think we all know what that is. 

And it can work really well for you as long as you pay attention to the statute requirements.In order to defer all tax you are selling investment real estate and buying investment real estate of at least the same value you sold. 

For instance, cities like Chicago are known for landlord-tenant laws that skew heavily in favor of tenants, and that risk should be baked into your underwriting.What’s your take on balancing short-term cash flow with long-term equity growth?

Or just go outside of the city to invest in Cabot, Conway, benton or Sherwood as well.

(I'm already seeing this in the towns I am currently invested)I know this hasn't really answered your question but I've been doing this for almost 5 years and it's working out well for me.

Well you'd actually be netting more in the long run by doing so compared to putting it towards the home. 

A builder that knows the area very well.

There are plenty of deals in Philly on and off-market from wholesalers, who are pretty decent in Philly compared to other places.You will need to get your GC license here and learn the permitting process and necessity here as well.

Take into consideration that when the person you gifted the property to will have special tax considerations as well 

I have known Brian for many years.