But inheriting someone else's unpaid bills or legal issues on the property can literally wipe out any potential profit, or worse, leave you holding a property you can't sell or even effectively own.

Unfortunately, as I have been analyzing properties in my identified neighborhoods, I haven't found anything that fits in my buybox and generates enough cashflow to justify the investment.

Neal gave $600K worth of his profit shares to Dave Freeman.

Another common issue is how profits are divided.

This means you get to ride the appreciation train to wealth generation two times over.

Last piece, I'm assuming this is a homeowner and not a for-profit owner.

In general, a 1031 exchange is only applicable for investment properties, and any personal use needs to be ancillary to the investment income it generates from rental income (I’m oversimplifying, but generally if you’re not operating this as a vacation rental and have minimal personal use, the 1031 is often off the table).Issue 2 requires some serious consideration before you move forward, and even if you feel you have a strong case there, I still think issue 1 is going to be a huge hurdle.Assuming you overcome the hurdles with the second issue, An alternative strategy to get around the first issue could potentially be using an EAT (exchange accommodation titleholder) instead of your mom taking title to the property.

Repairs, vacancy, or changes in demand can quickly eat into profits.

It eventually became maybe 2-3K profit for both total and no longer worth it.

But with a co-living setup, renting out each bedroom separately at $850 per room could generate $4,250+ per month—a 70% increase in rental income.