The other side is an investment property and you will pay tax on the gain associated with it unless you do a 1031 exchange and defer the tax by using the process and buying another investment property.You can always move out of the one side and use the entire property as investment for a year or so and then sell and 1031 the entire thing.But The really powerful thing is that if you hang on to that property and continue to live there until you qualify for the primary residence exemption you can then sell and take half of the gain tax free and defer the tax on the remaining gain with a 1031.

I don't know how much a basic water heater or dishwasher costs today but the deductible plus a few months' premium would probably cover either.The only repair they ever covered (not quite) was a cracked heat exchanger in a gas furnace.

Just looked back at some of the PMs we had exchanged wow.....five years ago!

Do you plan to pay your portion of the capital gains tax when the property is sold or will you make an exchange?

After 10 years, then they can call those loans.Our first option is to 1031 exchange after the 5th year or close to it. 

BTW: This is precisely what your lawyer is getting paid to do.You also should have prepared estoppels and reviewed them with the existing tenants - making adjustments as necessary - and had the tenants attest them.  

I would have exchanged to something in Duluth but the inventory in my price point at the time was minimal and, what was there, did not hit the numbers I was seeking. 

Way to go @Felipe Carrillo and @Elmo Vincent for sticking it out for multiple hours this past Saturday and Sunday helping me with my quarterly maintenance rounds.  In total we visited 5 homes (which really helped me)....

I can only imagine what would happen the moment an AirBNB guest accidentally broke something, was unintentionally loud, arrived at 11:00 at night and made some noise or what have you.Offering some dirty, filthy money in exchange for increased opportunities to make yourself even wealthier (like Scrooge McDuck doing the back stroke in a pile of gold coins), will not be received well.  

Hi all,I’m doing a 1031 exchange and will have $200k to purchase my next property.