The alternative is selling the property, and using your 25k equity towards another project that you can turn in half the time. 4 projects a year make you 100k in profits year one.

In our current market, house hacking is best considered in context as an alternative to renting and a way to get started multifamily investing in a strong market that might otherwise be unaffordable.

One alternative I have is buying a new primary residence with less than 20 down, getting two roommates and saving up equity in a much shorter time.

@Jon K. and @Jeff Goodale it's not the direct answer to your question but I did write an article about a different alternative to this HERE...and you don't need anyone to hold an escrow for you and the rate is better on the refinance step. 

I’ve watched countless videos and have considered many possible streams of income from day trading, to owning a gumball machine. 

Alternatively, if you can get double-digit returns in real estate, aren't you better off investing those funds in new real estate investments?

If the question is what is best for the client, I recommend selling the house, using the profits to repay the IRS in total, and looking for a low-cost housing alternative. 

I maybe wrong on some of these info, but I’m just following advice that I was given and open to more alternative solutions.

It is a powerful tool.have extra sheets comforters so you can alternate them and take home the dirty ones.

I would have a real estate lawyer worry about the details, but at this point I'm wondering if this is something that can be done, or if there are other alternatives that may be equally beneficial in deferring capital gains?