Hello, We have a triplex in a lower-income neighborhood in the Tampa Bay area.

It’s temporarily lost its shine because of the slow down in transactions.

Part of me thinks this is the lower conflict route but part of me thinks the cats will do way more in damages than the $1,600 I would get in pet fees over four months.

Even then, the IRS may scrutinize the transaction if it appears the intent was to immediately convert the property into a personal residence.Additionally, if you eventually sell the property after converting it to a primary residence, you may qualify for partial benefits under the Section 121 exclusion for primary residence gains.

If I were you, I'd pass on this property and look for something else (and I suggest a 3 BR) under $80 that you can put a little rehab into, unless insurance pays your family member a bunch of money and they accept a much lower price. 

Your PM should be making recommendations on updates you could make to get it rented, or recommending to lower the rent.

They are lower than what I’ve been setting and getting. 

With $50k, you likely have enough to get started, especially if you target lower-cost markets or use a strategy like house hacking.

If all of them have a garage and yours does not that will either put you at a lower ARV then what you thought, or a longer time on market.

If you sell the property, a lot of the $107K cost will be eaten up in transaction cost.