Does anyone know what you have to do on a tax return if the assets were incorrectly entered for a rental unit that actually belongs on another rental unit? 

It seems this market is ideal for cash flow, as rents seem to easily cover mortgage, taxes, and more with plenty left over for profit.

At a minimum, I recommend selling it within three years of renting it so you don't lose the tax free gain on sale of a primary residence.

I will share my "Most Expensive Lesson" in the comments.To kick things off, here are ten examples of expensive lessons or mistakes in real estate investing:Underestimated Repairs: The classic pitfall where the cost of repairs and renovations far exceeds initial estimates, impacting the overall budget and profitability.Tax Liens: Failing to account for or being unaware of existing tax liens on a property can result in unexpected financial burdens.Contractor Liens: Not settling payments or disputes with contractors can lead to liens against your property, complicating sales or refinancing.HOA Fines: Overlooking or violating Homeowners Association (HOA) rules can lead to significant fines and headaches.Bad Loan Products: Opting for loan products without fully understanding their terms can lead to unfavorable financial conditions, such as higher interest rates or unfavorable repayment terms.Ignoring Zoning Laws: Investing in a property without a clear understanding of local zoning laws may restrict its use, affecting your investment strategy.Overpaying for a Property: Lack of research or getting caught in a bidding war can result in paying much more than the property's worth.Neglecting Due Diligence: Skipping thorough inspections and background checks can uncover unpleasant surprises after the purchase is finalized.Poor Tenant Screening: Failing to properly screen tenants can lead to unpaid rent, property damage, and costly evictions.Underestimating Market Risk: Not considering market fluctuations can lead to investments that don't pay off as expected, especially in volatile or declining markets.We've all been there in one way or another, facing setbacks that seemed daunting at the time.

Selling yes. 1031 in a perfect world yes.If you can find a property and meet the time lines then yes.I have done a 1031 and it worked out great.I have also just sold paid the tax and put the money in the bank to have working capital to deploy on my timeline.

There is no final “price match” you can get generally until the closing date is established, rate is locked, and all fees are balanced.

You can look them up on your county site: foreclosures, divorce, death, auction, tax liens.

Here is a site LA county site for the Tax Auctions:  https://ttc.lacounty.gov/schedule-of-upcoming-auctions/HTHS

Have never gone through all of the intro steps recommended (finally doing so).

The amount my tenant is paying me per month only cover 95% of my mortgage, HOA, and taxes.