The safe harbor provides that the IRS will not challenge the qualification of property as either replacement property or relinquished property, or the treatment of the accommodation party as the property owner under the like-kind exchange rules, if property is held in a qualified exchange accommodation arrangement (QEAA).

There were some challenges.

Follow up: We got our day in court but the judge started with defendant/squatter.

Challenges?

Challenges?

Challenges?

But there are more similarities than you’d expect.The challenge is how to monitor these multiple, dispersed locations simultaneously, without the cost of hiring more staff.

And with your projected low rent that is most likely the case.You will find it challenging to meet the 1% rule in Cali and some of the other criteria that many investors use for evaluation of a property.

Challenges:1) An LO won't exempt you from any rental inspections/repairs, as you are technically still the owner2) Don't assume buyers/tenants will take better care of the property.

Always start from zero on both your Revenue and expenses and challenge and build them up.Make sure your offer has a 30 day due diligence period.