I would love to invest out of state where the market is much better but relocating for my type of work isn't an option so I'm stuck investing here if I want to pursue the househacking option.

No sketchy business practices. 

They're practically free and full of information.  

Same taxpayer on both sides, and the replacement should be held for investment.Best practical tipDo not let the exchange force you into a bad deal.

Note I 100% know that CPM is not LTR PM with a few tweaks- I have lived and practiced this for over two decades.

Two practical steps: treat the transfer as an intercompany sale at fair market value with a simple bill of sale (consult your CPA to record it properly on both LLCs' books), and book the cash-out proceeds as a loan repayment or capital return to LLC #1 so it stays clean for taxes.What's the appraised value at refi and how much cash came out—that'll help pinpoint the exact journal entries?

Limited Relocation & High Tenant RetentionHealthcare providers invest heavily in their locations through:•Specialized buildouts•Expensive medical equipment•Licensing and regulatory approvalsThese factors significantly reduce relocation risk, resulting in higher tenant retention and lower vacancy compared to other commercial asset classes.⸻7.

It is standard practice and component level depreciation is encouraged by the IRS.Though it is very important to track you time as you go along.

It’s a practical middle ground between owning solo and full syndications, but I think past bad experiences and a lack of simple education around these structures keep more people from considering it.

Practical, focused, just the right length!