Renters are all up to date and no missed or late rents.

@Michael PaywalaI am a multifamily investor located in Greenville SC.Always looking to buy more apartments.Maybe we can meet up when you are in Greenville sometime.Arn

. - along with inconsistent incomeTo be honest this person should not be investing in real estate and focus their time and energy on getting a stable w2 or income and get their credit cleaned up first

You break up. 

I haven't really investigated yet but was curious if they were something I could do to build up capital. 

In your case you could take the first 25% of the gain up to $250k tax free with the 121 exclusion, and qualify for a 1031 exchange since it is also used for investment use.

Hey @Michael Baum, we had previously depreciated some stuff but ended up with a return of about $25k.

Sometimes it will seem great, but then it gets it horribly wrong with confidence.While most exchanges are relatively vanilla, using an experienced QI and tax advisors in the process is well worth the avoidance of blowing up a 1031. 

They can draw up the contract the makes sense / protects you. 

I’m finishing up a multifamily rebuild and am looking for my next project.