The value will be treated as taxable income to you if this is a tax-deferred IRA.Why you would want to do so is something to question.  

Even if the tenant is excellent, you should still be looking for any deferred maintenance issues.I inspect after eight months.

They either missed a zero or they meant monthly...or the place is a total dump with a ton of deferred maintenance.

I know they love the yard and the garage for their plants, but it is time and I deferred this project since just prior to the pandemic.

I do feel though that 2022+ will see more motivated sellers with little equity (owned < 2-5yr) with FHA/VA so little equity certainly if you add defered maintenance.I get many replies with swear words etc, most have blocked me I suspect.Its not the ripe for deals tool that you'd think

The 2-out-of-five-year rule applies to individuals who are looking to defer that capital gain on a *primary* residence. 

@Patrick Rich Good option is to 1031 exchange (sell the property) and put your money tax deferred into a great cash flowing market.

Assuming student loans are showing as deferred / $0 monthly payment on your credit report, ask if your lender is using 0.5% of the balance rather than 1%. 

And in order to defer all tax you must purchase at least as much as your net sale.

Maybe ask them about a deferred sales trust?