Proc. 2008-16, the IRS will not challenge that a property qualifies for Section 1031 gain deferral if—1. the relinquished property has been held for at least 24 months immediately preceding the exchange and in each of the two 12-month periods immediately preceding the exchange,a. the taxpayer rents the residence to another person at fair market value for at least 14 days, andb. the taxpayer does not use the property more than the greater of 14 days or 10% of the total number of days the property was used; and2. the replacement property is held for at least 24 months immediately after the exchange and in each of the two 12-month periods immediately following the exchange,a. the taxpayer rents the residence to another person at fair market value for at least 14 days, andb. the taxpayer does not use the property more than the greater of 14 days or 10% of the total number of days the property was used 

This is going to be a challenge but were gonna give it the old college try. 

My challenge is that I have heard that property management companies will not rent out a property like this by the room.  

Challenges?

BUT now, I've found myself in a challenging place due to my current living situation. 

Houston city council created several ordinances 3-5 years ago that made small multi-family more challenging.  

Challenges?

Low down payment conventional loans are very restrictive for owner occupied multis which are some of the challenges I am running into. 

Challenges?

Getting started when you don't have funding is challenging, but not impossible!