It has been extended towards the end of June 2021 so its going to be interesting how that's gonna play out.

You can most likely use bonus depreciation and take the expense year one.

Also if you plan on renting to people who are on section 8 you can get a hold of the Lee County Housing Authority as they are always looking for places and they currently have a bonus (I believe it is still available) if you rent to someone who has section 8.My places up in Lewiston, Maine are almost always rented through Facebook Marketplace. 

Sounds like they want to play the game, "Watch the Market Cycle" and buy another place if things cool down.Unless you have tons of assets to protect I wouldn't worry about renting to a lawyer.

Just to play devils advocate - It may be worth looking at taking the tax advantage of living in the house and not taking any capital gains tax when selling and capitalize on the current crazy market and go buy some better cash flowing assets in areas less expensive with better rent to purchase ratios.

If you take cash out beyond purchase price there are other rules that come into play. 

He's not naive to think there wasn't more wayyyyy more at play, but rather that this was a contributing factor that added fuel to the dumpster fire.The US Population growth % has been declining since the 1990s so it's not totally new, but we've been able to shave off less births with immigration.

Additionally, your goals will play a big part in what you ultimately decide.

I call this playing moneyball in real estate. 

Couple tax related questions:1) A 1031 exchange would never come into play in this scenario since there's no actual 'sale' taking place. 2) If we did an actual sale instead of a transfer, could he use a 1031 exchange to pay off his RV and pay no capital gains on the difference between the sale price and the $88k he bought it for 30 years ago?